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Financial Accounting

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Balance Sheet Accumulated Depreciation DDB

FINACT-KGLKFE

Spirit Corporation purchased a piece of equipment to be used in its operations for \$230,000 on August 1, 2017 with an estimated salvage value of \$20,000 and a 4-year useful life. Spirit records partial-year depreciation on equipment and uses the double-declining-balance method.

What is the balance in the accumulated depreciation account on Spirit Corporation’s balance sheet at 12/31/18?

A

\$115,000

B

\$126,875

C

\$182,083

D

\$138,958