Blanton Company bought equipment on January 1, 2012, with a cost of $160,000, an estimated residual value of $40,000, and an estimated life of 15 years was depreciated by the straight-line method for 4 years.Due to obsolescence, it was determined at the beginning of 2016 that the useful life should be shortened by 3 years and the residual value changed to zero.What is the accumulated depreciation at the end of 2015?

Question

Quizplus · Accepted Answer

The annual depreciation is calculated as follows:
($160,000 - $40,000) ÷ 15 = $8,000 per year
Accumulated depreciation for 4 years is:
4 years × $8,000/year = $32,000

Therefore, the accumulated depreciation at the end of 2015 is $32,000. Option B is the correct answer.

Blanton Company Bought Equipment on January 1, 2012, with a Cost