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Financial Accounting

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Solve for Proceeds Received When Asset Was Sold for Loss

FINACT-5ZH1S1

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 \$13,500
Cash received when sold \$ — ? —
Loss on sale, equipment (\$2,300)

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