Accounting : You will see the question in the picture I attached: it is a multic

Question

Accounting :

You will see the question in the picture I attached: it is a multichoice question, just tell me which option is the correct?

Equipment acquired on January 1, 2014, is sold on June 30, 2018, for $11,200. The equipment cost $46,800, had an estimated residual value of $6,800, and arn estimated useful life of 5 years. The company prepared financial statements on December 31, and the equipment has been depreciated using the straight line od n 1.therd end the euipment has ben dispreciated usingthe sraigt-ins method. On June 30, 2018, the company should record Depreciation Expense of OB. $4,000. Oc. $2,000 OD. $8,000.

Explanation / Answer

Depreciation per year under straight line method = $46,800 - $6,800/5 years

= $8,000

But asset is used in 2018 is from Jan. to June that means 6 months.

Depreciation in 2018 = $8,000*6/12 months

= $4,000.

Therefore, option B is correct.

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