medium · Financial Accounting assets

At the end of year 5, a company sells a machine for $10,000. The machine cost $50,000, had an estimated life of 8 years, and a salvage value of $2,000. The company uses straight-line depreciation.

What is the accumulated depreciation at the time of sale?

  1. $31,250
  2. $20,000
  3. $30,000
  4. $18,750

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