Use the information below to answer the following questions:
Jacques Ltd purchased a computer for $4500 on 1 July 2009. It had an estimated useful life of 3 years. It was depreciated using the straight-line method. The financial year ends on 30 June.
-What was the balance of accumulated depreciation at 30 June 2012?
A) $3000
B) $4500
C) $5000
D) $1500.

Question

Use the information below to answer the following questions:
Jacques Ltd purchased a computer for $4500 on 1 July 2009. It had an estimated useful life of 3 years. It was depreciated using the straight-line method. The financial year ends on 30 June. 
-What was the balance of accumulated depreciation at 30 June 2012?
A) $3000
B) $4500
C) $5000
D) $1500.

Quizplus · Accepted Answer

Straight-line method means that the same amount of depreciation is charged every year. 
Depreciation per year = Cost of the computer / Useful life 
= $4500 / 3 
= $1500 
Therefore, accumulated depreciation by 30 June 2012 (3 years later) = Depreciation per year x Number of years 
= $1500 x 3 
= $4500. 
So, the balance of accumulated depreciation at 30 June 2012 was $4500.

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