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QUESTION 8 Correct Mark 1.00 out of 1.00 Remove flag Edit question Selected T-account balances for Bloomfield Company are shown below as of January 31,2017; accounting adjustments have already been posted. The firm uses a calendar-year accounting period but prepares monthlyadjustments Truck Accumulated Depreciation-Truck Jan. 31 Bal. 10.200 Jan. 31 Bal. 2,040 If the truck has a useful life of five years (or 60 months), how many months has Bloomfield owned the truck? Select one: O A. 3 months B. 24 months O C. 18 months D. 12 months

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QUESTION 8 Correct
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Selected T-account balances for Bloomfield Company are shown below as of January 31,2017; accounting
adjustments have already been posted. The firm uses a calendar-year accounting period but prepares
monthlyadjustments
Truck
Accumulated Depreciation-Truck
Jan. 31 Bal. 10.200
Jan. 31 Bal. 2,040
If the truck has a useful life of five years (or 60 months), how many months has Bloomfield owned the
truck?
Select one:
O A. 3 months
B. 24 months
O C. 18 months
D. 12 months
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QUESTION 8 Correct Mark 1.00 out of 1.00 Remove flag Edit question Selected T-account balances for Bloomfield Company are shown below as of January 31,2017; accounting adjustments have already been posted. The firm uses a calendar-year accounting period but prepares monthlyadjustments Truck Accumulated Depreciation-Truck Jan. 31 Bal. 10.200 Jan. 31 Bal. 2,040 If the truck has a useful life of five years (or 60 months), how many months has Bloomfield owned the truck? Select one: O A. 3 months B. 24 months O C. 18 months D. 12 months

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Step 1

Total cost of truck: 10200 with the useful life of 5 years (or 60 months) and salvage value is not given (therefore, assumed to be Nil)

Thus, Depreciable cost = Cost of assets - Salvage value = 10200-0 = 10200.

Now, Depreciable cost is depreciated among 60 months. Therefore, depreciation expenses per month is computed as under:

Deprecciation per month = Depreciable cost / Number of months = 10200 /60 = $ 170.

As per Question, Accumulated depreciation balance is $ 2040 which states the total depreciation accumulated from date of purchase to till date i.e. Jan 31, 2017.

Therefore,  Assets has been used for  =Accumulated depreciation balance / Monthle depreciation = 2040/170 = 12 months.

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