Ben George, Inc. has an unadjusted balance in Accumulated Depreciation─Truck of $9,000 as of December 31, 2010. This relates to a Truck purchased for $15,000 with an expected useful life of 5 years that is depreciated using the straight line method. After recording the depreciation expense for 2011, the adjusted balance in the Accumulated Depreciation─Truck account as of December 31, 2011 is:

Question

Quizplus · Accepted Answer

The annual depreciation expense for the truck can be calculated as $15,000 / 5 = $3,000 per year. Therefore, the depreciation expense for 2011 would be $3,000. The adjusted balance in Accumulated Depreciation─Truck as of December 31, 2011 can be calculated as the unadjusted balance of $9,000 plus the depreciation expense for 2011 of $3,000, which equals $12,000. Therefore, the correct answer is B.