Answered
Rick Company uses straight-line depreciation for its property,plant,and equipment which-stated at cost-consisted of the following:
20152014 Land $25,000$25,000 Buildings 195,000195,000 Machinery and equipment 795,000750,0001,015,000970,000 - Accumulated depreciation (420,000)‾(400,000)‾ Net book value 5595,000$570,000\begin{array}{lcc} & \mathbf{2 0 1 5} & \mathbf{2 0 1 4} \\\text { Land } & \$ 25,000 & \$ 25,000 \\\text { Buildings } & 195,000 & 195,000 \\\text { Machinery and equipment } & 795,000 & 750,000 \\& 1,015,000 & 970,000 \\\text { - Accumulated depreciation } & \underline{(420,000)} & \underline{(400,000)} \\ \text { Net book value } &5595,000 & \$ 570,000\end{array} Land Buildings Machinery and equipment - Accumulated depreciation Net book value 2015$25,000195,000795,0001,015,000(420,000)5595,0002014$25,000195,000750,000970,000(400,000)$570,000
Rick's depreciation expense for 2015 and 2014 was $115,000 and $110,000 respectively.
Required:
What amount was debited to accumulated depreciation during 2015 because of property,plant,and equipment retirements?
On May 26, 2024