Practice prompt · Q:transactions-to-statements/depreciation-schedule-001

Compute and interpret a straight-line schedule

Formative numerical check on depreciable amount, estimate sensitivity, accumulated depreciation, carrying amount, and remaining allocation.

Updated Aug 6, 2026 Review due Nov 6, 2026

Practice

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Equipment costs $52,000, has $4,000 estimated residual value, an eight-year estimated useful life, and an even service pattern. Three full years have elapsed with no estimate change, disposal, or impairment. Which schedule and interpretation are correct?

Choose the best answer. A Annual depreciation $6,000; accumulated depreciation after three years $18,000; carrying amount $34,000; remaining depreciable amount $30,000; market value and physical condition are not determined. B Annual depreciation $6,500; accumulated depreciation $19,500; carrying amount $32,500; market value $32,500. C Annual depreciation $6,000; accumulated depreciation $6,000; carrying amount $46,000; remaining depreciable amount $42,000. D Annual depreciation $16,000; accumulated depreciation $48,000; carrying amount $4,000 because the full depreciable amount is recognized over three years.

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Answer: A

Depreciable amount is $52,000 minus $4,000, or $48,000. Dividing by eight years gives $6,000 annual depreciation. After three full years, accumulated depreciation is $18,000, carrying amount is $52,000 minus $18,000, or $34,000, and remaining depreciable amount is $48,000 minus $18,000, or $30,000. The schedule does not compute market value.