Proceeds from asset sale formula

Steps:

• Net book value = original cost - accumulated depreciation = 760 - 500 = 260
• Profit on sale = proceeds - net book value
• Rearrange to find proceeds = net book value + profit = 260 + 70
• Proceeds = 330

Why D is correct:

• Proceeds equal net book value plus profit, as defined in accounting for asset disposals.

Why the others are wrong:

• A: Adds only depreciation and profit, ignoring cost.
• B: Likely subtracts depreciation from profit, missing net book value.
• C: Understates by subtracting profit from net book value.

Final answer: D