A medical practice that uses accrual accounting and straight-line depreciation of durable equipment bought an examination table for $2000 that will be depreciated over ten years. At the end of its second year, the posting for the annual operating expense related to the examination table will be ____.

Question

Quizplus · Accepted Answer

The examination table, costing $2000 and depreciated over ten years using straight-line depreciation, incurs an annual depreciation expense of $200 ($2000/10 years). This amount is posted as an operating expense each year, including the end of its second year.

A Medical Practice That Uses Accrual Accounting and Straight-Line Depreciation