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vesna_86 [32]
3 years ago
8

g Equipment was purchased for $94700 on January 1, 2021. Freight charges amounted to $3800 and there was a cost of $12000 for bu

ilding a foundation and installing the equipment. It is estimated that the equipment will have a $25000 salvage value at the end of its 5-year useful life. What is the amount of accumulated depreciation at December 31, 2022 if the straight-line method of depreciation is used
Business
1 answer:
motikmotik3 years ago
4 0

Answer:

$34,200

Explanation:

Calculation of total Cost of Equipment

Purchase Price                              $94700

Freight charges                              $3800

Foundation and Installation          $12000

Total                                             $110,500

Annual Depreciation = Cost - Salvage Value / Useful Life

                                   = ( $110,500 - $25000) / 5

                                   = $17,100

Accumulated Depreciation = $17,100 x 2 = $34,200

Therefore,

the amount of accumulated depreciation at December 31, 2022 is  $34,200.

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