Jacques Ltd purchased a truck for $45 000 on 1 July 2018. It had an estimated useful life of three years. It was depreciated using the straight-line method. The financial year ends on 30 June. What was the accumulated depreciation at 30 June 2020?

Question

Quizplus · Accepted Answer

The annual depreciation is calculated as the cost of the asset divided by the number of years of useful life. In this case, the annual depreciation is $45,000 / 3 = $15,000. 
For the first year, the accumulated depreciation would be $15,000. 
For the second year, it would be $30,000 ($15,000 from first year + $15,000 from second year). 
Therefore, the accumulated depreciation at 30 June 2020 (end of second year) would be $30,000.

Jacques Ltd Purchased a Truck for $45 000 on 1