Maxwell Tax Planning Service bought communications equipment for $10,200 on January 1,2019.The equipment has an estimated useful life of five years and zero residual value.Maxwell uses the straight-line method to calculate depreciation and records depreciation expense in the books at the end of each month.As of June 30,2019,the balance in the Accumulated Depreciation account for this equipment is ________.
A) $170
B) $2,040
C) $850
D) $1,020

Question

Quizplus · Accepted Answer

D) Straight-line depreciation = (Cost - Residual value) / Useful life
Straight-line depreciation = ($10,200 - 0) / 5 years = $2,040 per year 11ea8873_d44f_af31_bb89_0bc47319abd5_TB5026_00 11ea8873_d44f_d642_bb89_8bc64855e136_TB5026_00

Maxwell Tax Planning Service Bought Communications Equipment for $10,200 on January