Fleet Services Company purchased equipment for $12,000 on January 1, 2022.The company expects to use the equipment for 5 years.It has no salvage value.What balance would be reported on the December 31, 2022 balance sheet for Accumulated Depreciation?
A)$0 because Accumulated Depreciation is reported on the Income Statement.
B)$2,400
C)$9,600
D)$12,000

Question

Quizplus · Accepted Answer

The equipment is depreciated over 5 years with no salvage value, so the annual depreciation is $12,000 / 5 = $2,400. After one year, the accumulated depreciation is $2,400.

Fleet Services Company Purchased Equipment for $12,000 on January 1