Question

The annual depreciation taken on a vehicle totals $4,400. The vehicle has been in service for three full years and the adjusting entries have been completed for the year. At the end of the third year, the balance in the Depreciation Expense account is $______ and the balance in the Accumulated Depreciation account is $______.

Answer 1

Answer:

Depreciation expense =  $4,400

Accumulated depreciation = $13,200

Explanation:

Depreciation: The depreciation is the amount which decreases the value of the asset. It can be by obsolescence, usage, tear and wear, etc.

The annual depreciation is given i.e. $4,400 which will be charged in depreciation expense whereas the accumulated depreciation would be equal to

=  Annual Depreciation × useful life

= $4,400 × 3

= $13,200