Alby Ltd purchased a machine for $32 000 on 1 January 2015.The machine was expected to have a useful life of four years.The financial year ends on 31 December.The straight-line method of depreciation is employed.
-What was the balance of the Accumulated depreciation account at 31 December 2017?

Question

Quizplus · Accepted Answer

The machine has a useful life of 4 years, so the annual depreciation is $32,000 / 4 = $8,000. By 31 December 2017, which is 3 years later, the accumulated depreciation would be $8,000 * 3 = $24,000.

Alby Ltd Purchased a Machine for $32 000 on 1