doorglam paid $49,000 for office furniture. the furniture is depreciated using the straight - line method…

doorglam paid $49,000 for office furniture. the furniture is depreciated using the straight - line method and has an estimated service life of 7 years and no residual value. after three years of use, the accumulated depreciation of the furniture will be:\na. $21,000\nb. $42,000\nc. $28,000\nd. $49,000

doorglam paid $49,000 for office furniture. the furniture is depreciated using the straight - line method and has an estimated service life of 7 years and no residual value. after three years of use, the accumulated depreciation of the furniture will be:\na. $21,000\nb. $42,000\nc. $28,000\nd. $49,000

Answer

Explanation:

Step1: Calculate annual depreciation

Annual depreciation = $\frac{\text{Cost - Residual value}}{\text{Useful life}}$. Here, cost = $49000$, residual value = $0$, useful life = $7$ years. So, annual depreciation = $\frac{49000 - 0}{7}=7000$.

Step2: Calculate accumulated depreciation after 3 years

Accumulated depreciation = Annual depreciation $\times$ Number of years. Number of years = $3$. So, accumulated depreciation = $7000\times3 = 21000$.

Answer:

A. $21,000$