Sykes Corporation's comparative balance sheets at December 31, Year 2 and Year 1 reported accumulated depreciation balances of $800,000 and $600,000 respectively. Property with a cost of $50,000 and a carrying amount of $40,000 was the only property sold in Year 2. Depreciation charged to operations in Year 2 was:

Question

Business

Lorelai Horn

17 May, 19:47

Sykes Corporation's comparative balance sheets at December 31, Year 2 and Year 1 reported accumulated depreciation balances of $800,000 and $600,000 respectively. Property with a cost of $50,000 and a carrying amount of $40,000 was the only property sold in Year 2. Depreciation charged to operations in Year 2 was:

+5

Answers (1)

Know the Answer?

Gordon Wilkins · Answer 1

Depreciation charged to operations in Year 2 was $210,000

Explanation:

The computation of the depreciation expense in year 2 is shown below:

= Ending balance of accumulated depreciation - beginning balance of accumulated depreciation + original cost of property - sale value of the property

= $800,000 - $600,000 + $50,000 - $40,000

= $210,000

We simply take the difference between the ending and opening balance of accumulated depreciation, and original and sale value of the property