Final answer:
The accumulated depreciation for the Milton Company's asset on May 1, 2019, is $194,250, calculated using the straight-line depreciation method over 3 years and 1 month.
Step-by-step explanation:
The Milton Company purchased a depreciable asset for $350,000, with an estimated salvage value of $35,000 and a useful life of 5 years. Using the straight-line depreciation method, we calculate annual depreciation by subtracting the salvage value from the purchase price and then dividing by the useful life. Therefore, the annual depreciation is ($350,000 - $35,000) / 5 = $63,000.
To find the accumulated depreciation on May 1, 2019, we consider 3 years and 1 month of depreciation since the purchase date on April 1, 2016. The accumulated depreciation for the full three years is 3 × $63,000 = $189,000. For the additional month, we calculate the monthly depreciation ($63,000 / 12) which equals $5,250 and add it to the three-year total, giving us $189,000 + $5,250 = $194,250. Based on the calculation, the correct balance in the accumulated depreciation account on May 1, 2019, is $194,250, which corresponds to answer choice A.