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Asset C3PO has a depreciable base of $16.5 million and a service life of 10 years. What would the accumulated depreciation be at the end of year five under the sum-of-the-years'-digits method?
A. $ 4.5 million.
B. $8.25 million.
C. $ 12 million.
D. None of these is correct.

Respuesta :

Answer:

C. $12 million.

Explanation:

The computation of the  accumulated depreciation be at the end of year five under the sum-of-the-years'-digits method is given below:

Accumulated depreciation is

= $16.5 million × [(10 + 9 + 8 + 7 + 6) ÷ 55]

= $12 million

hence, the accumulated depreciation be at the end of year five years is $12 million

Therefore the correct option is c.

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