Ask Question
21 November, 14:32

Emir Company purchased equipment that cost $110,000 cash on January 1, 2015. The equipment had an expected useful life of six years and an estimated salvage value of $8,000. Assuming that Emir depreciates its assets under the straight-line method, the amount of depreciation expense appearing on the 2018 income statement and the amount of accumulated depreciation appearing on the December 31, 2018 balance sheet would be: Depreciation Expense Accumulated Depreciation A. $ 17,000 $ 17,000 B. $ 17,000 $ 68,000 C. $ 68,000 $ 17,000 D. $ 17,000 $ 51,000

+2
Answers (1)
  1. 21 November, 17:09
    0
    B. $ 17,000 $ 68,000

    Explanation:

    Depreciation is the systematic allocation of the cost of an asset to the income statement over the estimated useful life of that asset.

    It is determined as the depreciable value of the asset over the estimated useful life of the asset where the depreciable value is the difference between the cost and salvage value of the asset.

    Depreciation = (110,000 - 8,000) / 6

    = 102,000/6

    = $17,000

    Between 2015 and 2018 is 4 years

    Accumulated depreciation

    = 4 * $17,000

    = $68,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Emir Company purchased equipment that cost $110,000 cash on January 1, 2015. The equipment had an expected useful life of six years and an ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers