Question

g On January 1, 2021, Leardon Inc. purchased equipment for $25,000. The company is depreciating the equipment at the rate of $1,000 per month. At January 31, 2022, the balance in Accumulated Depreciation is:

Answer 1

Answer:

$24,000

Explanation:

The Straight line method of depreciation charges a fixed amount of depreciation. The the rate of $1,000 per month presents that the company uses straight line method.

For the balance of accumulated depreciation, we simply count the number of months from January 1, 2021 to January 31, 2022 and multiply by $1,000.

Accumulated Depreciation = 24 months x $1,000 = $24,000

At January 31, 2022, the balance in Accumulated Depreciation is $24,000.