Chapter 6, Problem 6.1MC

Sykes Corporation’s comparative balance sheets at December 31, Year 2 and Year 1, reported accumulated depreciation balances of $800,000 and $600 000, respectively. Property with a cost of $50,000 and a carrying amount of $40,000 was the only property sold in Year 2. Depreciation charged to operations in Year 2 was:

1. a. $190,000
2. b. $200,000
3. c. $210,000
4. d. $220,000