Using the sum-of-the-years'-digits method, depreciation for 2009 and book value at December 31, 2009 would be:
A)$22,000 and $44,000.
B)$22,000 and $50,000.
C)$24,000 and $48,000.
D)$24,000 and $42,000.Depreciation, 2009 = ($72,000 6,000) 5/15 = $22,000 Book value, 12/31/2009 = $72,000 22,000 = $50,000

Question

Quizplus · Accepted Answer

The solution for depreciation and book value is given as ($72,000 - 6,000) 5/15 = $22,000 and $72,000 - $22,000 = $50,000 respectively. Therefore, the correct choice is B.

Using the Sum-Of-The-Years'-Digits Method, Depreciation for 2009 and Book Value