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A company purchased equipment for $72,000 on January 1. Freight charges paid to acquire the equipment amounted to $2,000. There was also a cost of $3,000 for building a foundation for the equipment and installing the equipment. It is estimated that the equipment will have a $10,000 salvage value at the end of its 6-year useful life. The straight-line method of depreciation is used. What is the amount of accumulated depreciation at the end of the second year of using the asset and after adjusting entries have been recorded?
22,333
Cost of the equipment = $72,000 + 2,000 + 3,000 = $77,000
Depreciation per year = (Cost - salvage value)/Life in year
Depreciation per year = ($77,000 - 10,000)/6 years = $11,167 per year
Accumulated depreciation after two years = 2 x $11,667 = $22,333

Respuesta :

The amount of accumulated depreciation at the end of the second year of using the asset and after adjusting entries have been recorded is $22,333.

Cost of the equipment = $72,000 + 2,000 + 3,000 = $77,000

Depreciation per year = (Cost - salvage value)/Life in year

Depreciation per year = ($77,000 - 10,000)/6 years = $11,167 per year

Accumulated depreciation after two years = 2 x $11,667 = $22,333

Depreciation is the method of deducting the price of a business asset over an extended period of time, rather than over the course of 365 days. There are four predominant methods of depreciation: immediately line, double declining, sum of the years' digits and devices of manufacturing.

The time period depreciation refers to an accounting technique used to allocate the value of a tangible or physical asset over its useful life. Depreciation represents how an awful lot of an asset's cost has been used. It lets in companies to earn sales from the assets they personal by way of purchasing them over a positive time period.

Learn more about depreciation here : https://brainly.com/question/1203926

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