Martin Company paid $500,000 for equipment. Martin uses straight-line depreciation. Currently the Accumulated Depreciation account shows a balance of $200,000. If the asset has no residual value and an estimated life of 10 years, how many years has the asset been depreciated? (Round your final answer to the nearest year.)

Question

Quizplus · Accepted Answer

The annual depreciation expense is $50,000 ($500,000 / 10 years). With $200,000 accumulated depreciation, the asset has been depreciated for 4 years ($200,000 / $50,000 per year).

Martin Company Paid $500,000 for Equipment