Carlton Company acquired a tract of land on June 30,2008.The total cost of the land was $90,000.Carlton estimated that the land would be used for 10 years and then sold.Assuming the company uses straight-line depreciation,the total depreciation taken on the land for the year ended December 31,2003should be:

Question

Quizplus · Accepted Answer

The question asks for the depreciation taken for the year ended December 31, 2003, but the company acquired the land on June 30, 2008, which means that the land was not even owned by Carlton Company in 2003. Therefore, the depreciation for 2003 should be $0.

Carlton Company Acquired a Tract of Land on June 30,2008