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Financial Accounting

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Solve for Proceeds Received When Asset was Sold for Gain

FINACT-KSJQOP

Your client just sold their old equipment. They use straight-line depreciation. The asset was purchased on January 1, Year 1 and was sold on March 31, Year 3.

The details of the equipment and the sale include:

Details on Sold Equipment:
Original cost \$30,000
Accumulated Depreciation, Mar 31, Year 3 \$6,750
Cash received when sold \$ — ? —
Gain on sale, equipment \$750

What is the amount of the cash proceeds from the sale of equipment that will be reported in the Investing section of the Cash Flow Statement?