Answer: €1,750,000.

To determine the cash received from the sale of equipment, follow these steps: 1. **Calculate the accumulated depreciation on the equipment sold**: - Beginning balance of accumulated depreciation: €7,000,000 - Add: Depreciation expense: €4,000,000 - Subtract: Ending balance of accumulated depreciation: €8,000,000 - Accumulated depreciation on the equipment sold: €7,000,000 + €4,000,000 - €8,000,000 = €3,000,000 2. **Determine the book value of the equipment sold**: - Historical cost of equipment sold: €5,000,000 - Subtract: Accumulated depreciation on equipment sold: €3,000,000 - Book value: €5,000,000 - €3,000,000 = €2,000,000 3. **Compute the cash received from the sale**: - Book value of the equipment sold: €2,000,000 - Subtract: Loss on sale: €250,000 - Cash received: €2,000,000 - €250,000 = €1,750,000 Option B is correct because the cash received is calculated as the book value minus the loss on sale, resulting in €1,750,000.

Author: LeetQuiz Editorial Team