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Received cash for the sale of equipment that had cost $70,600, yielding a $4,200 gain.

Question

Received cash for the sale of equipment that had cost 70,600,yieldinga70,600, yielding a 4,200 gain.

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Solution

To analyze the received cash for the sale of equipment, we can break down the problem into understanding the financial implications of the transaction.

Breakdown of the Problem

  1. Cost of Equipment: $70,600
  2. Gain on Sale: $4,200
  3. Cash Received from Sale: This is what we need to compute.

Relevant Concepts

  • The gain on the sale of an asset is calculated as: Gain=Cash ReceivedCost of Equipment \text{Gain} = \text{Cash Received} - \text{Cost of Equipment}

Analysis and Detail

To find the cash received, we can rearrange the formula: Cash Received=Cost of Equipment+Gain \text{Cash Received} = \text{Cost of Equipment} + \text{Gain} Substituting the known values: Cash Received=70,600+4,200 \text{Cash Received} = 70,600 + 4,200

Verify and Summarize

Now, let's perform the addition: Cash Received=70,600+4,200=74,800 \text{Cash Received} = 70,600 + 4,200 = 74,800

Final Answer

The cash received from the sale of the equipment is $74,800.

This problem has been solved

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