Use the Following Information for Questions -Depreciation Expense for 2020 Was
A) $ 86,000

question 25

Multiple Choice

Use the following information for questions.
During calendar 2020, Laertes Corp. sold equipment for $ 70,000. The equipment had cost $ 100,000 and had a book value of $ 52,000 at the time of sale. Data from their comparative statements of financial position are: $\begin{array}{lrr}&\operatorname{Dec} 31 / 20&\operatorname{Dec} 31 / 19\\\text { Equipment } & \$ 720,000 & \$ 650,000 \\\text { Accumulated Depreciation } & 210,000 & 190,000\end{array}$
-Depreciation expense for 2020 was

• A) $ 86,000.
• B) $ 68,000.
• C) $ 18,000.
• D) $ 12,000.

---

Definitions:

Direct Materials

Raw materials used in the production of goods that are directly associated with the finished product.

Incremental Analysis

The process of identifying the financial data that changes under alternative courses of action.

Fixed Overhead

Regular, ongoing costs that are not affected by the level of production or sales, such as rent, salaries, and insurance.

Direct Materials

Raw materials directly used in the manufacturing of a product, which are easily traceable to the finished product.