Answered

Weir Company (a fictional company) uses straight-line depreciation for its property, plant, and equipment, which, stated at cost, consisted of the following: December 31, 20X1 20X0 Land $ 25,000 $ 25,000 Buildings 195,000 195,000 Machinery and equipment 695,000 650,000 915,000 870,000 Less accumulated depreciation (400,000 ) (370,000 ) $ 515,000 $ 500,000 Weir’s depreciation expenses for 20X1 and 20X0 were $55,000 and $50,000, respectively. Required: What amount was debited to accumulated depreciation during 20X1 because of property, plant, and equipment retirements?

Answer :

Answer: $25,000

Explanation:

Depreciation is when the value of an asset reduces because the asset has been in use or due to obsolescence.

In this scenario, the amount that will be debited to accumulated depreciation during 20X1 because of property, plant, and equipment retirements will be calculated thus:

Ending accumulated depreciation - Beginning accumulated depreciation - Depreciation during 20X1

= $400000 - $370000 - $55000

= $25000

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