Question

Foxx Corp.'s comparative balance sheet at December 31, 2021 and 2020 reported accumulated depreciation balances of $1253000 and $890000, respectively. Property with a cost of $74900 and a carrying amount of $57100 was the only property sold in 2021.
Required:
1. Depreciation charged to operations in 2021 was ___________.

Answer 1

Answer:

$380,800

Explanation:

The accumulated depreciation is the cumulative depreciation of asset. Foxx Corp.'s has accumulated depreciation of $1253000 and $890000 for the year 2021 and 2020. The depreciation expense for the year 2021 will be difference of accumulated depreciation of two years. The depreciation charge will be $1,253,000 - $890,000 = $363,000

The company has also sold a asset which has a carrying value of $57100. The depreciation charge of this asset will be $74,900 - $57,100 = $17,800

The total depreciation expense for the year 2021 is $363,000 + $17,800 = $380,800