Barnhart's Sold a Piece of Restaurant Equipment to Another Restaurant

question 83

Multiple Choice

Barnhart's sold a piece of restaurant equipment to another restaurant on July 1,2013 for $1,100 cash.The equipment originally cost $12,000,had an estimated life of 20 years,and estimated salvage value of $2,000.Barnhart's had recorded total depreciation of $9,000 through the end of 2012,using the straight-line method.Barnhart's had to update the depreciation of the asset before recording the sale.
-How much additional depreciation expense was recorded for the period of January 1,2013 through July 1,2013?

• A) $250
• B) $500
• C) $460
• D) $220