Sabrina's Fabric Land bought $5,000 of equipment at the beginning of 2019. Amortization expense on the 2019 income statement is $400. What is the balance in accumulated amortization on December 31, 2019?

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Accumulated amortization is the total amount of amortization expense that has been recorded against an asset. Since the equipment was bought at the beginning of 2019 and the amortization expense for 2019 is $400, the balance in accumulated amortization on December 31, 2019, would be $400, reflecting the amortization expense for that year.

Sabrina's Fabric Land Bought $5,000 of Equipment at the Beginning