Answer:
The amount of accumulated depreciation at December 31, 2023 is $6,375
Explanation:
Sheridan Company uses the straight-line depreciation, Depreciation Expense each year is calculated by following formula:
Annual Depreciation Expense = (Cost of delivery truck − Salvage Value)/Useful Life = ($36,000-$2,000)/8 = $4,250
Depreciation Expense in 2022 = ($4,250/12) x 6 = $2,125
Depreciation Expense in 2023 = $4,250
Accumulated depreciation at December 31, 2023 = Depreciation Expense in 2022 + Depreciation Expense in 2023 = $2,125 + $4,250 = $6,375