On January 1, 2023, Murphy Inc. purchased equipment for $38,400. The company is depreciating the equipment at the rate of $800 per month. At January 31, 2022, the balance in Accumulated Depreciation is

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Since the equipment was purchased on January 1, 2023, there is no balance in Accumulated Depreciation as of January 31, 2022. The company will start depreciating the equipment from January 1, 2023, at the rate of $800 per month.

Therefore, the Accumulated Depreciation at January 31, 2022, which is one year before the purchase date, will be $10,400. (12 months x $800/month = $9,600 accumulated depreciation for 1 year + $800 depreciation for January 2022)