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Financial Accounting

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Balance Sheet Accumulated Depreciation Under STL Method

FINACT-5NXX1C

Spirit Corporation purchased a piece of equipment to be used in its operations for \$700,000 on May 31, 2017 with an estimated salvage value of \$100,000 and a 5 year life. Spirit records partial-year depreciation on equipment and uses the straight-line method.

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

A

\$170,000

B

\$120,000

C

\$70,000

D

\$190,000