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Vadim26 [7]
3 years ago
6

Pizzicletta Pizza Shop purchased a stone pizza oven on January 1, 2018. The oven cost $50,000 and has an estimated salvage value

of $10,000. Using the straight-line method of depreciation, annual depreciation expense is computed as $8,000. What is the balance in the Accumulated Depreciation account at the end of 2020 (end of year 3)
Business
1 answer:
AlexFokin [52]3 years ago
8 0

Answer:

Accumulated depreciation= $24,000

Explanation:

Giving the following information:

Using the straight-line method of depreciation, annual depreciation expense is computed as $8,000.

Under the straight-line depreciation method, the annual depreciation remains the same during the useful life.

Accumulated depreciation= annual depreciation*number of years

Accumulated depreciation= 8,000*3= $24,000

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