Question

Stear Corp. bought a machine on January 1, 2012 for $30,000. The company follows a policy of depreciating assets at 5 percent each year. What will be the closing credit total of the Accumulated depreciation account after the first year? A. $3,000 B. $1,500 C. $27,000 D. $28,500

Answer 1

1. 30000 x 5% = 1500.
2. 30000 - 1500 (because it has depreciated) = 28500.

So, the Accumulated depreciation account after the first year would be $28,500 (D).


I hope it helped you!

Answer 2

Answer:

B.  

$1,500

Explanation:

30,000x 0.5=1500