Question

On January 1, 2020, Fiscus Company purchased equipment costing $90,000. Fiscus records depreciation expense for the equipment at the rate of $1,000/month. What is the credit balance in FIscus Company's accumulated depreciation account for this equipment at December 31, 2020

Answer 1

the credit balance in FIscus Company's accumulated depreciation account for this equipment at December 31, 2020 is $120,000

Step-by-step explanation:

The computation of the credit balance is shown below:

= Depreciation expense per month × number of months

= $1,000 × 12 months

= $120,000

Hence, the credit balance in FIscus Company's accumulated depreciation account for this equipment at December 31, 2020 is $120,000