Answer:
$450,400
Explanation:
Using the straight line method
Purchased asset on January 1, 2020
Total cost of asset = $1,160,000
Salvage value = $34,000
Useful life = 5 year
Annual depreciation is the allocation of cost to the use of the asset. When added every year, it gives the accumulated depreciation.
Annual depreciation = ($1,160,000 - $34,000)/5
= $1,126,000/5
= $225,200
Between January 1, 2020 and December 31, 2021 is two years. That means the accumulated depreciation equals 2 years depreciation
Accumulated depreciation at December 31, 2021
= $225,200 × 2
= $450,400
