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Financial Accounting

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Balance Sheet Accumulated Depreciation SYD Partial Year

FINACT-UHPAG4

Spirit Corporation purchased a piece of equipment to be used in its operations for \$400,000 on May 1, 2017 with an estimated salvage value of \$25,000 and a 5-year useful life. Spirit records partial-year depreciation on equipment and uses the sum-of-the-years-digits method.

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

A

\$108,334

B

\$191,668

C

\$208,332

D

\$225,000