Question
Equipment with a cost of $100,000 was sold in 2013.
This equipment had accumulated depreciation of
What is the amount of depreciation expense for 2014?
The answer is 13500
I see that they use 20500 – (112000-10500)
Can someone explain their relations? Why would they subtract 7000 from 20500.
|
|
12/31/2014 |
12/31/2013 |
|
Property, Plant and Equipment |
$375,000 |
$240,000 |
|
Less Accumulated Depreciation |
$105,000 |
$112,000 |
|
The income statement reflected a loss on the sale of equipment of |
$10,000 |
|
|
Equipment with a cost of $100,000 was sold in 2013. This equipment had accumulated depreciation of |
$20500 |
|
