A machine has a cost of $15,000,an estimated residual value of $3,000,and an estimated useful life of four years.The machine is being depreciated on a straight-line basis.At the end of the second year,what amount will be reported for accumulated depreciation?
A)$9,000.
B)$6,000.
C)$7,500.

Question

Quizplus · Accepted Answer

To calculate accumulated depreciation on a straight-line basis, the cost of the asset is divided by its useful life. In this case, the annual depreciation is ($15,000 - $3,000) / 4 = $3,000. At the end of the second year, the accumulated depreciation will be $3,000 x 2 = $6,000. Therefore, the correct answer is option B.

A Machine Has a Cost of $15,000,an Estimated Residual Value