Help Sa Required information [The following information applies to the questions

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Help Sa Required information [The following information applies to the questions displayed below The following events apply to Gulf Seafood for the 2018 fiscal year 1. The company started when it acquired $60,000 cash by issuing common stock. 2. Purchased a new cooktop that cost $40,000 cash. 3. Earned $72,000 in cash revenue. 4. Paid $25,000 cash for salaries expense. 5. Adjusted the records to reflect the use of the cooktop. Purchased on January 1, 2018, the cooktop has an expected useful life of four years and an estimated salvage value of $4.000. Use straight-line depreciation. The adjusting entry was made as of December 31, 2018. What amount of accumulated depreclation would Gulf Seafood report on the December 31, 2019, balance sheet? ated depreciation Next >

Explanation / Answer

Cost of the assets $ 40,000 Less: Salvage value $ (4,000) Depreciable value $ 36,000 Depreciation per year ($36,000/4) $    9,000 Accumulated depreciation at December 31, 2019 ($9,000*2) $ 18,000

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