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Canliss Mining uses the retirement method to determine depreciation on its office equipment. During 2019, its first year of operations, office equipment was purchased at a cost of $14,000. Useful life of the equipment averages four years and no salvage value is anticipated. In 2021, equipment costing $5,000 was sold for $600 and replaced with new equipment costing $6,000. Canliss would record 2021 depreciation of:

Answer :

abiolataiwo2015

Answer:

$4,400

Explanation:

Canliss Mining

Cost of equipment $5,000

Less proceeds $600

Depreciation $4,400

Therefore Canliss would record 2021 depreciation of $4,400 because Depreciation can simply means reduction in asset just as the information given about

Canliss Mining in which equipment costing $5,000 but was sold for $600

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