Question

Foxx Corp.'s comparative balance sheet at December 31, 2021 and 2020 reported accumulated depreciation balances of $1,245,000 and $900,000, respectively. Property with a cost of $75,000 and a carrying amount of $57,000 was the only property sold in 2021. Depreciation charged to operations in 2021 was :___________.a. 363000b. 327000c. 345000d. 342000

Answer 1

Answer:

a. 363000

Explanation:

depreciation expense for the year = accumulated depreciation 2018 - accumulated depreciation 2017 + asset's book value - asset's sales price = $1,245,000 - $900,000 + $75,000 - $57,000 = $363,000

an asset's book value (carrying value) = purchase cost - accumulated depreciation of the asset