Jeffreys Company Reports Depreciation Expense of $40,000 for Year 2

Multiple Choice

Jeffreys Company reports depreciation expense of $40,000 for Year 2. Also, equipment costing $240,000 was sold for a $10,000 loss in Year 2. The following selected information is available for Jeffreys Company from its comparative balance sheet. Compute the cash received from the sale of the equipment.
$$\begin{array} { | l | l | l | } \hline \text { At December 31 } & { \text { Year 2 } } & \text { Year 1 } \\\hline \text { Equipment } & \$ 510,000 & \$ 750,000 \\\hline \text { Accumulated Depreciation-Equipment } & 328,000 & 500,000 \\\hline\end{array}$$

A) $62,000.
B) $58,000.
C) $18,000.
D) $38,000.
E) $28,000.