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.

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