A manufacturing company purchased equipment on January 1, 2004 for $450,000. As of January 1, 2013, depreciation of $202,500 had been recorded on this asset. Depreciation expense for 2013 is $22,500. After the adjustments are recorded and posted at December 31, 2013, what are the balances for the Equipment and Accumulated Depreciation? Equipment Accumulated Depreciation

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The Equipment account remains at its original cost of $450,000. The Accumulated Depreciation account is updated by adding the 2013 depreciation expense of $22,500 to the previously recorded depreciation of $202,500, resulting in a balance of $225,000.

A Manufacturing Company Purchased Equipment on January 1, 2004 for $450,000