Kertis, Inc. reported Net fixed assets as follows on its Balance sheets for December 31, 2011 and December 31, 2012: 2011 2012 Net fixed assets 200,000 250,000 On its 2012 Income statement, Kertis recorded depreciation expense of $23,000. Assume that Kertis had Accumulated depreciation in 2011 of $ 109,314. If Kertis did not sell any fixed assets in 2012, what would Kertis have recorded as Accumulated depreciation in 2012

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Business

Brennan Wall

16 October, 12:52

Kertis, Inc. reported Net fixed assets as follows on its Balance sheets for December 31, 2011 and December 31, 2012: 2011 2012 Net fixed assets 200,000 250,000 On its 2012 Income statement, Kertis recorded depreciation expense of $23,000. Assume that Kertis had Accumulated depreciation in 2011 of $ 109,314. If Kertis did not sell any fixed assets in 2012, what would Kertis have recorded as Accumulated depreciation in 2012

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Jovanni Gaines · Answer 1

Accumulated depreciation in 2012 is $132,314

Explanation:

2011 2012

Net fixed assets $200,000 $250,000

Depreciation expense = $23,000

Accumulated depreciation in 2011 = $109,314

Depreciation in 2012 = $23,000

Accumulated depreciation in 2012 = $109,314 + $23,000

= $132,314