Question

Bell Corp.'s comparative balance sheet at December 31, 2009 and 2008 reported accumulated depreciation balances of 800,000 and 600,000, respectively. Property with a cost of 50,000 and a carrying amount of 38,000 was the only property sold in 2009. Depreciation charged to operations in 2009 was __________.

Answer 1

To calculate the depreciation charged to operations for Bell Corp in 2009, subtract the beginning year accumulated depreciation from the end year balance, and add back the depreciation related to the sold asset, resulting in $212,000.

Step-by-step explanation:

Calculating Depreciation Charged to Operations

To determine the depreciation charged to operations for Bell Corp in 2009, we can follow these steps:

1. Identify the accumulated depreciation at the beginning and end of the year.
2. Take into account the sale of the property and its carrying amount.
3. Calculate the total depreciation for the year.

Bell Corp had an accumulated depreciation balance of $600,000 at the beginning of 2009 and $800,000 at the end. Since property was sold with a carrying amount of $38,000 and a cost of $50,000, it means that there had been $12,000 ($50,000 cost - $38,000 carrying amount) of accumulated depreciation related to the sold asset. To find the total depreciation charged to operations in 2009, we need to adjust the end of year accumulated depreciation for the sale of the asset.

The calculation would be:

• Ending Accumulated Depreciation: $800,000
• Less Beginning Accumulated Depreciation: $600,000
• Add Depreciation Related to the Sold Asset: $12,000
• Depreciation Charged to Operations in 2009: $212,000