Answer:
$156,000
Explanation:
Depreciation expense = (Cost of asset - Salvage value) ÷ useful years
($400,000 - $10,000) ÷ 5 = $78,000
The depreciation expense recognised every year is $78,000.
Accumulated depreciation is the sum of yearly depreciation expense.
Accumulated depreciation at the end of the second year = $78,000 × 2 = $156,000
Answer:
The amount of accumulated depreciation at the end of the second year is $156,000.
Explanation:
Determining the depreciation base = 400,000 - 10,000
The depreciation base = 390,000.
Determining the depreciation rate = depreciation base/useful life
The depreciation rate = 390,000/5
The depreciation rate = 78,000.
Depreciation for the two years = Depreciation rate × No. of years (which is 2)
Depreciation for the two years = 78,000 × 2
Depreciation for the two years = $156,000.
