Lomax Enterprises purchased a depreciable asset for $22,000 on March 1,Year 1.The asset will be depreciated using the straight-line method over its four-year useful life.Assuming the asset's salvage value is $2,000,what will be the amount of accumulated depreciation on this asset on December 31,Year 4?

Question

Quizplus · Accepted Answer

[($22,000 - $2,000)/4] * 10/12 = $4,166.67 of accumulated depreciation at the end of Year 1. Since annual depreciation expense is $5,000 [($22,000 - $2,000)/4], accumulated depreciation on December 31, Year 4 would be $19,166.67 ($5,000 per year for three years + $4,166.67 in the partial year of Year 1).

Lomax Enterprises Purchased a Depreciable Asset for $22,000 on March