Question

The following information is for X Company for the year:

Equipment, January 1		$12,980
Equipment, December 31		11,270
Cost of equipment sold		7,571
Purchase of equipment		7,623

What was depreciation expense for the year?

A: $682

B: $881

C: $962

D: $1,762

E: $2,562

F: $2,962

Answer 1

The Answer is D: $ 1,762

Working:

Equipment
Beg Balance	$       12,980	Asset Sold	$           7,571
Purchase of Equipment	$          7,623	Depreciation[Balancing Figure]	$           1,762
End Balance	$       11,270