Answer:
$3,500
Explanation:
Data provided in the question:
Useful life = 5 years
Cost of the equipment = $70,000
Salvage value = 0
Life elapsed in the year = 3 months [from October to 31 December ]
Now,
Annual depreciation = [ Cost - Salvage value ] ÷ Useful life
= [ $70,000 - 0 ] ÷ 5
= $14,000 per year
Thus,
the accumulated depreciation for the year i.e for 3 months
= Annual depreciation × Life elapsed
= $14,000 per year × [tex]\frac{3}{12}[/tex] year
= $3,500
