Use the information below to answer the following questions.
Alby Ltd purchased a machine for $32,000 on 1 January 2010. The machine was expected to have a useful life of 4 years. The financial year ends on 31 December. The straight-line method of depreciation is employed.
-What was the balance of the accumulated depreciation account at 31 December 2011?
A) $24 000
B) $27 750
C) $31 500
D) $16 000.

Question

Quizplus · Accepted Answer

Depreciation expense for 2011 = $32,000 / 4 * 1 = $8,000Accumulated depreciation at 31 December 2011 = $8,000 * 2 = $16,000

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