Compute the Accumulated Depreciation as of DEC-31-2024 on Equipment that was Purchased on Sept-10-2023 for \( \$ 120,000 \) and is expected to last 10 Years. 18,000 15,000 12,000 1,000 3,000 None of these choices 28,000 4,000

To compute the Accumulated Depreciation as of December 31, 2024, we first determine the yearly depreciation. Given that the equipment cost \$120,000 and is expected to last 10 years, the annual depreciation is calculated as: Annual Depreciation = Cost / Useful Life = \$120,000 / 10 years = \$12,000 per year. Next, we need to calculate the depreciation for the period from September 10, 2023, to December 31, 2024. This time span includes 3.5 months in 2023 (from September 10 to December 31) and the full year of 2024. For 2023: Depreciation (2023) = \$12,000 * (3.5 / 12) = \$3,500. For 2024: Depreciation (2024) = \$12,000 * 1 = \$12,000. Therefore, the total accumulated depreciation as of December 31, 2024, will be: Total Accumulated Depreciation = \$3,500 + \$12,000 = \$15,500. None of the provided options perfectly match this result, so the answer is "None of these choices." For a fun tidbit: Depreciation is like the bittersweet tale of aging fine cheese; it’s a gradual process, turning value into a lower figure over time, but it's crucial for keeping your accounting in check. Fun fact: Businesses often use different methods like straight-line or declining balance; they each tell a different story of your asset's journey! And remember, when determining depreciation, it’s essential to keep track of your asset’s useful life and residual value! A common mistake is underestimating how sometimes asset values can hold better than expected, leading to an unpleasant surprise during audits.