Equipment Was Purchased for $50,000,residual Value Is $2,000 and It

question 28

Short Answer

Equipment was purchased for $50,000,residual value is $2,000 and it is expected that the useful life is 10 years.What is the amount in the Accumulated Depreciation account after 3 years assuming straight-line depreciation?
$ ________

---

Definitions:

Patent Amortization

The process of gradually writing off the initial cost of a patent over its useful life, reflecting the decrease in value due to time and use.

Credit

The right side of an account.

Accumulated Amortization

The cumulative amount of amortization expense that has been recorded against an intangible asset.

Depletion

The allocation of the cost of a natural resource to expense in a rational and systematic manner over the resource’s useful life.