Question

Sykes​ Corporation's comparative balance sheets at December​ 31, Year 2 and Year 1 reported accumulated depreciation balances of​ $800,000 and​ $600,000 respectively. Property with a cost of​ $50,000 and a carrying amount of​ $40,000 was the only property sold in Year 2. Depreciation charged to operations in Year 2​ was:

Answer 1

Answer:

Depreciation charged to operations in Year 2​ was $210,000

Explanation:

The computation of the depreciation expense in year 2 is shown below:

= Ending balance of accumulated depreciation - beginning balance of accumulated depreciation + original cost of property - sale value of the property

= $800,000 - $600,000 + $50,000 - $40,000

= $210,000

We simply take the difference between the ending and opening balance of accumulated depreciation , and original and sale value of the property