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.