The annual depreciation taken on a vehicle totals $4,350.The vehicle has been in service for three full years and the adjusting entries have been completed for the year.At the end of the third year,the balance in the Depreciation Expense account is $________ and the balance in the Accumulated Depreciation account is $________.

Question

Quizplus · Accepted Answer

Accumulated Depreciation is a balance sheet account and Depreciation Expense is an income statement account.As a balance sheet account,Accumulated Depreciation will increase over time as it accumulates the depreciation of each period.At the end of three years,that account balance will equal $13,050 (or $4,350 × 3).As an income statement account,Depreciation Expense will include only the depreciation of the current accounting year,which is $4,350.

The Annual Depreciation Taken on a Vehicle Totals $4,350