At December 31, 2022, Dynamic Exploration’s balance sheet showed total PPE assets of $802,000 and total accumulated depreciation of $339,980 as detailed in the PPE subledger below. Dynamic calculates depreciation to the nearest whole month.

Required

Complete the schedule by calculating depreciation expense for 2023 for each asset and then determining the balance of accumulated depreciation at December 31, 2023 (round to the nearest whole dollar).

Analysis Component:The depreciation methods used by Dynamic are not consistent among the building, modular furniture, and truck. Is this in accordance with GAAP? Explain why or why not.

Transcribed Image Text:

Cost Information Depreciation¹ Method Description Date of Purchase Cost² Residual Life Building May 2, 2017 10 yr. Modular furniture May 2, 2017 72,000 -0- 6 yr. 68,000 Truck Jan. 25, 2020 80,000 10,000 8 yr. 45,313 1 S/L = Straight-line; DDB = Double-declining-balance. 2 There have been no disposals or betterments since the date of purchase. S/L S/L DDB Balance of Accum. Deprec. Dec. 31, 2022 $226,667 $650,000 $250,000 Depreciation Depreciation Expense for 2023 Balance of Accum. Deprec. Dec. 31, 2023