Question

Kertis, Inc. reported Net fixed assets as follows on its Balance sheets for December 31, 2011 and December 31, 2012: 2011 2012 Net fixed assets 200,000 250,000 On its 2012 Income statement, Kertis recorded depreciation expense of $23,000. Assume that Kertis had Accumulated depreciation in 2011 of $ 109,314 . If Kertis did not sell any fixed assets in 2012, what would Kertis have recorded as Accumulated depreciation in 2012

Answer 1

Answer:

Accumulated depreciation in 2012 is $132,314

Explanation:

                                    2011                 2012

Net fixed assets       $200,000       $250,000

Depreciation expense = $23,000

Accumulated depreciation in 2011 = $109,314

Depreciation in 2012 = $23,000

Accumulated depreciation in 2012 = $109,314 + $23,000

= $132,314