Downs Tax Planning Service bought communications equipment for $9,600 on January 1, 2017. It has an estimated useful life of five years and zero residual value. Downs uses the straight-line method to calculate depreciation and records depreciation expense in the books at the end of every month. As of June 30, 2017, the balance in the Accumulated Depreciation account for this equipment is ________.
A) $160
B) $1,920
C) $800
D) $960
D .Straight-line depreciation = (Cost - Residual value) / Useful life
Straight-line depreciation = ($9,600 - 0 ) / 5 years = $1,920 per year
You might also like to view...
Which of the following is the primary function of supply chain management in companies?
A) optimizing the flow of products and services from their source to the customer B) restructuring the organizational hierarchy to facilitate effective communication C) improving the visibility of a product or service through effective promotional strategies D) identifying the optimum target market to increase the likelihood of the sale of a product
Which step in the analyze phase of DMAIC involves determining what characteristics of the process need to be changed to achieve improvement?
A) analyze sources of variability B) improvement projection C) independent variable identification D) performance objectives definition E) return to control