Question

NC Office Supply purchased a heating system on September 1, 2019, for$18,500. The estimated salvage (disposal) value is $500 and the estimated useful life is 10 years. What is the accumulated depreciation at the end of 2021

Answer 1

Answer:

Accumulated deprecation [End of 2021] = $4,200

Explanation:

Given:

Purchase cost on [1 sep 2019] = $18,500

Salvage value = $500

Number of year = 10 year

Find:

Accumulated deprecation [End of 2021]

Computation:

Amount of depreciation per year = [Purchase cost - Salvage value] / Number of year

Amount of depreciation per year = [18,500 - 500]10

Amount of depreciation per year = $1,800

Accumulated deprecation [End of 2021] = Depreciation in 2019 + Depreciation in 2020 + Depreciation in 2021

Accumulated deprecation [End of 2021] = [1,800(4/12)] + 1,800 + 1,800

Accumulated deprecation [End of 2021] = 600 + 1,800 + 1,800

Accumulated deprecation [End of 2021] = $4,200