Lima Enterprises purchased a depreciable asset for $22,000 on April 1,Year 1.The asset will be depreciated using the straight-line method over its four-year useful life.Assuming the asset's salvage value is $2,000,what will be the amount of accumulated depreciation on this asset on December 31,Year 3?
A)$5,000
B)$15,000
C)$15,125
D)$20,000
E)$13,750

Question

Quizplus · Accepted Answer

The total depreciable amount is $22,000 - $2,000 = $20,000. Over four years, annual depreciation is $20,000 / 4 = $5,000. By December 31, Year 3, the asset has been depreciated for 2 years and 9 months. Thus, accumulated depreciation is $5,000 * 2.75 = $13,750.

Lima Enterprises Purchased a Depreciable Asset for $22,000 on April