During 20X0, Time & Tenders Co. sold equipment that had cost $206,000 for $127,600. This resulted in a gain of $9,600. The total balance in accumulated depreciation-equipment was$660,000 on January 1 20X0, and $630,000 on December 31. No other equipment was disposed of during 2010. Depreciation expense for 2010 was

Question

Quizplus · Accepted Answer

The correct answer is found by calculating the accumulated depreciation of the disposed equipment, which is $88,000. This is subtracted from the beginning accumulated depreciation balance, and the ending balance is used to find the depreciation expense for the year, which is $58,000.