Answer: 1,150

The correct answer is **B. 1,150**. The proceeds from the sale of long-lived assets are calculated as the carrying amount of the asset plus any gain on the sale. The carrying amount is the historical cost minus accumulated depreciation. In this case: - Carrying amount = Purchase price (1,000) - Accumulated depreciation (250) = 750 - Proceeds from sale = Carrying amount (750) + Gain on sale (400) = 1,150 Option A (750) only considers the carrying amount, while Option C (1,400) incorrectly adds the gain to the purchase price without accounting for depreciation.

Author: LeetQuiz Editorial Team