Jason Moore purchased computer equipment for $5,000 on January 1,2015.It has a residual value of $200 with a useful life of 6 years.After the appropriate adjusting entries have been made,the balance in Accumulated Depreciation account for this asset on January 1,2017,under the straight-line method,should be:

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Quizplus · Accepted Answer

The annual depreciation expense is ($5,000 - $200) / 6 = $800. After two years (2015 and 2016), the accumulated depreciation is 2 * $800 = $1,600.

Jason Moore Purchased Computer Equipment for $5,000 on January 1,2015