Three years ago a machine was purchased for $5,000. Assuming a ten-year life and straight-line depreciation with a no salvage value, which of the following will appear on the income statement and balance sheet respectively after four years? a. depreciation expense of $2,000, accumulated depreciation of $2,000. b. depreciation expense of $500, accumulated depreciation of $2,000. c. accumulated depreciation of $2,000, depreciation expense of $500. d. accumulated depreciation of $500, depreciation expense of $2,000. e. depreciation expense of $1,500, accumulated depreciation of $500.
Three years ago a machine was purchased for $5,000. Assuming a ten-year life and straight-line depreciation with a no salvage value, which of the following will appear on the income statement and balance sheet respectively after four years? a. depreciation expense of $2,000, accumulated depreciation of $2,000. b. depreciation expense of $500, accumulated depreciation of $2,000. c. accumulated depreciation of $2,000, depreciation expense of $500. d. accumulated depreciation of $500, depreciation expense of $2,000. e. depreciation expense of $1,500, accumulated depreciation of $500.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Three years ago a machine was purchased for $5,000. Assuming a ten-year life and straight-line
depreciation with a no salvage value, which of the following will appear on the income statement and balance sheet respectively after four years?a. depreciation expense of $2,000, accumulated depreciation of $2,000.b. depreciation expense of $500, accumulated depreciation of $2,000.c. accumulated depreciation of $2,000, depreciation expense of $500.d. accumulated depreciation of $500, depreciation expense of $2,000.e. depreciation expense of $1,500, accumulated depreciation of $500.
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