Financial Accounting Quiz

MobileT inc. purchased equipment for $100,000 on January 1, Year 1. The equipment had an estimated 10-year useful life and a $20,000 salvage value. Carr uses the straight-line depreciation method. In its Year 2 income statement, what amount should Carr report as depreciation expense for the equipment?

A) $2,000

B) $8,000

C) $10,000

D) $12,000

Reveal the Answer

The answer is B) $8,000

($100,000-$20,000)/10 = $8,000

Financial Accounting Professional Certificate

Explore the core financial accounting tools that will help you understand annual reports and footnotes – creating a solid understanding of the financial statements.

Enroll now in our next session!

Questions or Comments?

Call Us:

+1 347 842 2501

Email Us

Customerservice@nyif.com