Spaceship Corp purchased equipment at a cost of 500000 in Ja

Spaceship Corp. purchased equipment at a cost of $500,000 in January, Year5. As of January 1, Year9, depreciation of $120,000 had been recorded on this asset. Depreciation expense for Year9 is $30,000. After the adjustments are recorded and posted at December 31, Year9, what are the balances for the Equipment and Accumulated Depreciation (answers are in this order.)

Select one:

a. $30,000, $30,000

b. $500,000, $ 30,000

c. $120,000, $ 30,000

d. $350,000, $ -0-

e. $500,000, $150,000

Solution

Answer

equipment cost = 500000

accumulated depreciation = 120000 + 30000

= 150000

answer = e ) 500000 , 150000