Question

The annual depreciation taken on a vehicle totals $4,700. The vehicle has been in service for two full years and the adjusting entries have been completed for the year. At the end of the second year, the balance in the Depreciation Expense account is $______ and the balance in the Accumulated Depreciation account is $______.

Answer 1

Answer:

Depreciation Expense account is $4,700

Balance in the Accumulated Depreciation account is $9,400

Explanation:

Depreciation is used to determine how a value of a fixed asset decreases with time due to usage. Examples of assets that can be depreciated include equipment, buildings, vehicles and machinery. If the annual depreciation in this case is $4,700, at the end of the second year, depreciation expense would be $4,700. however, accumulated depreciation would be (4700 +4700) totaling to $9,400