Question

Concord Corporation'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. Depreciation charged to operations in 2021 wasa. $380800.
b. $420100.
c. $345200.
d. $363000.

Answer 1

Answer:

$380,800

Explanation:

When an asset is sold, the cost and accumulated depreciation are derecognized from the books. Without the sale of an asset, the depreciation charge for the year would be the only difference between the closing accumulated depreciation from prior year to current year.

Change in accumulated depreciation

= $1253000 - $890000

= $363,000

Accumulated depreciation

= $74900 - $57100

= $17,800

Depreciation

= $363,000 + $17,800

= $380,800