If an asset was purchased on January 1,2015 for $140,000 with an estimated life of 5 years,what is the accumulated depreciation at December 31,2018?
A)$28,000.
B)$112,000.
C)$56,000.
D)$84,000.

Question

Quizplus · Accepted Answer

The asset has a life of 5 years, so the annual depreciation is $140,000 / 5 = $28,000. By December 31, 2018, which is 4 years later, the accumulated depreciation is $28,000 * 4 = $112,000.

If an Asset Was Purchased on January 1,2015 for $140,000