# The Ballard Company purchased

The Ballard Company purchased equipment for \$90,000 on January1, 2013 that is expected to have a useful life of 4 years at whichtime it will have a salvage value of \$10,000. If the company usesthe straight-line method of depreciation, what would the accountbalance of Accumulated Depreciation be at the end of 2015?

 Answer: Depreciation expense per Year -2013            =   ( Cost (-) Salvage Value ) / Useful life            =    ( \$ 90,000 (-) \$ 10,000 ) / 4 Years            =    \$ 20,000 Account balance of AccumulatedDepreciation be at the end of 2013 = \$ 20,000 Account balance of AccumulatedDepreciation be at the end of 2014                    = \$ 20,000 + \$ 20,000                    = \$ 40,000 Account balance of AccumulatedDepreciation be at the end of 2015                    = \$ 20,000 + \$ 20,000 + \$ 20,000                    = \$ 60,000

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