Weir Co. uses straight-line depreciation for its property, plant, and equipment, which, stated at cost, consisted of the following:
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|
12/31/06 |
12/31/05 |
|
|
Land |
$ 25,000 |
$ 25,000 |
|
Building |
195,000 |
195,000 |
|
Machinery and equipment |
695,000 |
650,000 |
|
915,000 |
870,000 |
|
|
Less accumulated depreciation |
400,000 |
370,000 |
|
$515,000 |
$500,000 |
Weir’s depreciation expense for 2006 and 2005 was $55,000 and $50,000, respectively. What amount was debited to accumulated depreciation during 2006 because of property, plant, and equipment retirements?
- $40,000
- $25,000
- $20,000
- $10,000