On January 1, 2008, the Accumulated Depreciation-Machinery account of a particular company showed a balance of $370,000. At the end of 2008, after the adjusting entries were posted, it showed a balance of $395,000. During 2008, one of the machines which cost $125,000 was sold for $60,500 cash. This resulted in a loss of $4,000. Assuming that no other assets were disposed of during the year, how much was depreciation expense for 2008?

Question

Quizplus · Accepted Answer

($395,000 - $370,000) + [$125,000 - ($60,500 + $4,000)] = $85,500.

On January 1, 2008, the Accumulated Depreciation-Machinery Account of a Particular