Hank's Tax Planning Service bought communications equipment for $7 200 on 1 January 2013. It has an estimated useful life of 5 years. Hank records depreciation monthly. As of 30 June 2013, the balance in the Accumulated depreciation account for this equipment is:

Question

Quizplus · Accepted Answer

The monthly depreciation is $7,200 / 60 months = $120. For 6 months (January to June), the accumulated depreciation is $120 * 6 = $720.

Hank's Tax Planning Service Bought Communications Equipment for $7 200