On January 2, 2019, Kaiman Corporation acquired equipment for $ 600,000. The estimated life of the equipment is 5 years or 50,000 hours. The estimated residual value is $ 10,000. What is the balance in Accumulated Depreciation on December 31, 2020, if Kaiman Corporation uses the straightminusline method ofdepreciation? a.118,000
b.240,000
c.120,000
d.236,000

d.236,000

Explanation:

The computation of the balance in the accumulated depreciation is shown belwo:

Depreciation expense is

= (Cost - residual value) ÷ estimated life

= ($600,000 - $10,000) ÷  5 years

= $118000

Now the accumulated depreciation for 2 years i.e. from 2019 to 2020 is

= $118,000 × 2 years

= $236,000

Hence, the correct option is d. $236,000

almost done 23 out of 25

there was no passage listed but using the process of elimination i'd say it was d. the high economy would do the opposite. i don't see how low prices would affect it. high unemployment is possible but i feel d is the better answer.