On January 1, 2017, Mudhoney Inc. purchased equipment for $45,000. The company is depreciating the equipment at the rate of $750 per month. At January 31, 2018, the balance in Accumulated Depreciation is

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Quizplus · Accepted Answer

The equipment was purchased on January 1, 2017, which means that it was in use for 13 months as of January 31, 2018 (the year 2017 plus one month in 2018).
Depreciation for 13 months at $750 per month is: $750 x 13 = $9,750.
Therefore, the balance in Accumulated Depreciation as of January 31, 2018, is $9,750.