Question

Using the following amounts for machinery at the end of year two of its useful life, what is the amount of accumulated depreciation? Purchase price $ 100,000 Appraised value $ 85,500 Book value $ 80,800 Salvage value $ 4,000

a. $15,200
B. $19,200
c. $20,000
d. $84,800

Answer 1

Option (B), The amount of accumulated depreciation for the machinery at the end of year two is $19,200, which is found by subtracting the book value of $80,800 from the purchase price of $100,000.

Step-by-step explanation:

Calculating Accumulated Depreciation

To calculate the amount of accumulated depreciation for the machinery at the end of year two, you need to deduct the book value from the purchase price.

The purchase price of the machinery is $100,000 and the book value at the end of year two is $80,800.

Therefore, the accumulated depreciation is calculated as follows:

Purchase Price - Book Value = Accumulated Depreciation

$100,000 - $80,800 = $19,200

So the correct answer is B: $19,200.