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