Use the following information for questions 61 and 62.
Equipment that cost $525,000 and had a book value of $234,000 was sold for $270,000. Data from the comparative balance sheets are: $\begin{array}{lrr}&12 / 31 / 15&12 / 31 / 14\
\text { Equipment } & \$ 3,240,000 & \$ 2,925,000 \
\text { Accumulated Depreciation } & 990,000 & 855,000
\end{array}$
-Depreciation expense for 2015 was
A) $462,000.
B) $426,000.
C) $81,000.
D) $54,000.

Question

Quizplus · Accepted Answer

The depreciation expense for 2015 is calculated by taking the change in accumulated depreciation and adjusting for the sale of equipment. The accumulated depreciation increased by $135,000 ($990,000 - $855,000). Since the equipment sold had a book value of $234,000 and was originally purchased for $525,000, it had accumulated depreciation of $291,000 ($525,000 - $234,000). To find the total depreciation expense for the year, add the increase in accumulated depreciation to the depreciation related to the sold equipment: $135,000 + $291,000 = $426,000.

Use the Following Information for Questions 61 and 62 -Depreciation Expense for 2015 Was A) $462,000

Use the Following Information for Questions 61 and 62 -Depreciation Expense for 2015 Was
A) $462,000