Question

The following information is for X Company for 2019: Equipment, January 1 $12,020 Equipment, December 31 $14,201 Purchases of equipment $7,228 Cost of equipment sold $3,702 Depreciation expense ?? What was depreciation expense in 2019? A: $1,345 B: $1,681 C: $2,102 D: $2,627 E: $3,284 F: $4,105

Answer 1

Equipment, January 1 = $12,020

Equipment, December 31 = $14,201

Purchases of equipment = $7,228

Cost of equipment sold = $3,702

Depreciation expense = ?

Equipment, December 31 = Equipment, January 1+Purchases of equipment-Cost of equipment sold-Depreciation expense

14,201 = 12,020+7,228-3,702-Depreciation expense

Depreciation expense = $1,345

Correct option is A.

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