Emir Company purchased equipment that cost $110,000 cash on January 1, Year 1. The equipment had an expected useful life of six years and an estimated salvage value of $8,000. Assuming that Emir depreciates its assets under the straight-line method, the amount of depreciation expense shown on the income statement prepared for Year 4 and the amount of accumulated depreciation shown on the balance sheet prepared as of December 31, Year 4, respectively, would be: $\begin{array} { l c c }
& \text { Depreciation expense } &\text { Accumulated } \
&&\text { depreciation } \\end{array}$
A. $\begin{array} { l c c } &&& \$ 17,000 &&&&&& \$ 17,000 \\end{array}$
B. $\begin{array} { l c c } &&& \$ 17,000 &&&&&& \$ 68,000 \\end{array}$
C. $\begin{array} { l c c } &&& \$ 68,000 &&&&&& \$ 17,000 \\end{array}$
D. $\begin{array} { l c c } &&& \$ 17,000 &&&&&& \$ 51,000
\end{array}$

Question

Emir Company purchased equipment that cost $110,000 cash on January 1, Year 1. The equipment had an expected useful life of six years and an estimated salvage value of $8,000. Assuming that Emir depreciates its assets under the straight-line method, the amount of depreciation expense shown on the income statement prepared for Year 4 and the amount of accumulated depreciation shown on the balance sheet prepared as of December 31, Year 4, respectively, would be: $\begin{array} { l c c } 
& \text { Depreciation expense } &\text { Accumulated } \
&&\text { depreciation } \\end{array}$
A. $\begin{array} { l c c } &&& \$ 17,000 &&&&&& \$ 17,000 \\end{array}$
B. $\begin{array} { l c c }  &&& \$ 17,000 &&&&&& \$ 68,000 \\end{array}$
C. $\begin{array} { l c c }  &&& \$ 68,000 &&&&&& \$ 17,000 \\end{array}$
D. $\begin{array} { l c c }  &&& \$ 17,000 &&&&&& \$ 51,000
\end{array}$

Quizplus · Accepted Answer

The Answer of Emir Company purchased equipment that cost $110,000 cash on January 1, Year 1. The equipment had an expected useful life of six years and an estimated salvage value of $8,000. Assuming that Emir depreciates its assets under the straight-line method, the amount of depreciation expense shown on the income statement prepared for Year 4 and the amount of accumulated depreciation shown on the balance sheet prepared as of December 31, Year 4, respectively, would be: $\begin{array} { l c c } 
& \text { Depreciation expense } &\text { Accumulated } \
&&\text { depreciation } \\end{array}$
A. $\begin{array} { l c c } &&& \$ 17,000 &&&&&& \$ 17,000 \\end{array}$
B. $\begin{array} { l c c }  &&& \$ 17,000 &&&&&& \$ 68,000 \\end{array}$
C. $\begin{array} { l c c }  &&& \$ 68,000 &&&&&& \$ 17,000 \\end{array}$
D. $\begin{array} { l c c }  &&& \$ 17,000 &&&&&& \$ 51,000
\end{array}$

Emir Company Purchased Equipment That Cost $110,000 Cash on January Depreciation expense Accumulated depreciation \begin{array} { l c c } & \text { Depreciation expense } &\text { Accumulated } \\&&\text { depreciation } \\\end{array}​ Depreciation expense ​ Accumulated depreciation ​

Emir Company Purchased Equipment That Cost $110,000 Cash on January $\begin{array} { l c c } & \text { Depreciation expense } &\text { Accumulated } \\&&\text { depreciation } \\\end{array}$