Question: Lawford Company's equipment account increased $400,000 during the period; the related accumulated depreciation increased $30,000. New equipment was purchased at a cost of $700,000 and used equipment was sold at a loss of $20,000.
Depreciation expense was $100,000. Proceeds from the sale of the used equipment were
a. $210,000.
b. $250,000.
c. $280,000.
d. $320,000.
Please explain your answer.