On January 1 2021 Leardon Inc.purchased equipment for $25000.The company is depreciating the equipment at the rate of $1000 per month.At January 31 2022 the balance in Accumulated Depreciation is:

Question

Quizplus · Accepted Answer

The total depreciation for one year (January 1, 2021, to December 31, 2021) will be $1000 x 12 = $12,000.
The depreciation for the month of January 2022 will be $1000.
The accumulated depreciation at January 31, 2022, will be $12,000 + $1000 = $13,000.