Downs Tax Planning Service bought communications equipment for $9,600 on January 1,2017.It has an estimated useful life of five years and zero residual value.Downs uses the straight-line method to calculate depreciation and records depreciation expense in the books at the end of every month.As of June 30,2017,the balance in the Accumulated Depreciation account for this equipment is ________.
A)$160
B)$1,920
C)$800
D)$960

Question

Quizplus · Accepted Answer

D)Straight-line depreciation = (Cost - Residual value)/ Useful life
Straight-line depreciation = ($9,600 - 0)/ 5 years = $1,920 per year 11ea8a42_4f1f_cce5_8b44_a907d5d85e80_TB5024_00 11ea8a42_4f1f_cce6_8b44_05b41d7879f9_TB5024_00

Downs Tax Planning Service Bought Communications Equipment for $9,600 on January