Question

During 2018, equipment was sold for $468,000. The equipment cost $786,000 and had a book value of $432,000. Accumulated Depreciation—Equipment was $2,061,000 at 12/31/17 and $2,205,000 at 12/31/18. Depreciation expense for 2018 was

a. $144,000.
b. $288,000.
c. $498,000.
d. $576,000.

Answer 1

The depreciation expense for 2018 is $144,000.

Step-by-step explanation:

The depreciation expense for 2018 can be calculated by finding the change in accumulated depreciation for the year. The change in accumulated depreciation is the difference between the accumulated depreciation at the end of 2018 and the accumulated depreciation at the end of 2017.

Therefore, the change in accumulated depreciation for 2018 is $2,205,000 - $2,061,000 = $144,000. This represents the amount of depreciation expense for the year.

So, the correct answer is (a) $144,000.