The Ballard Company purchased equipment for $90,000 on January 1, 2013 that is expected to have...

The Ballard Company purchased equipment for $90,000 on January 1, 2013 that is expected to have a useful life of 4 years at which time it will have a salvage value of $10,000. If the company uses the straight-line method of depreciation, what would the account balance of Accumulated Depreciation be at the end of 2015?

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Answer:

Depreciation expense per Year - 2013
             =   ( Cost (-) Salvage Value ) / Useful life
             =    ( $ 90,000 (-) $ 10,000 ) / 4 Years
             =    $ 20,000

Account balance of Accumulated Depreciation be at the end of 2013 = $ 20,000

Account balance of Accumulated Depreciation be at the end of 2014
= $ 20,000 + $ 20,000
= $ 40,000

Account balance of Accumulated Depreciation be at the end of 2015
= $ 20,000 + $ 20,000 + $ 20,000
= $ 60,000

ekkarill92 answered 1 year ago

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