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Balance Sheet Accumulated Depreciation U of P

FINACT-XDRYNE

Spirit Corporation purchased a piece of equipment to be used in its operations for \$350,000 on February 1, 2016 with an estimated salvage value of \$50,000. This piece of equipment is estimated to produce 400,000 units over its life of 5 years. In 2016, 85,000 units are produced and in 2017, 105,000 units are produced.

What is the balance in the accumulated depreciation account on Spirit Corporation’s balance sheet at 12/31/17?

A

\$120,000

B

\$207,500

C

\$157,500

D

\$142,500