Problem: Ford Company reports depreciation expense of $40,000 for Year 2. Also, equipment costing $150,000 was sold for its book value in Year 2. There were no other equipment purchases or sales during the year. The following selected information is available for Ford Company from its comparative balance sheet. At December 31
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Year 2
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Year 1
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Equipment
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$600,000
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$750,000
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Accumulated Depreciation-Equipment
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428,000
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500,000
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Required: Compute the cash received from the sale of the equipment.
A. $32,000
B. $68,000
C. $38,000
D. $40,000
E. $36,000