Answer:
The amount of accumulated depreciation at December 31, 2023 = $88,800.
Explanation:
<u>Determining the actual acquisition cost.</u>
The actual acquisition cost = Purchase value + freight charges + Installation costs.
The actual acquisition cost = 460,000 + 15,000 + 34,000.
The actual acquisition cost = $509,000.
<u>Determining the depreciable cost.</u>
The depreciable cost = acquisition cost - Salvage value.
The depreciable cost = 509,000 - 65000.
The depreciable cost = $444,000.
<u>Determining annual depreciation expense.</u>
Annual depreciation expense = depreciable cost / number of years.
Annual depreciation expense = 444,000 / 10.
Annual depreciation expense = 44,400.
<u>Determining the accumulated depreciation .</u>
The accumulated depreciation = annual depreciation expense × number of years.
The accumulated depreciation = 44,400 × 2.
The amount of accumulated depreciation at December 31, 2023 = $88,800.
