On 1 January Two Years' Ago, the Local Red Cross

Multiple Choice

On 1 January two years' ago, the local Red Cross affiliate acquired new blood-processing equipment costing $400 000. The equipment has an estimated useful life of 10 years and an estimated residual value of $50 000. After making all necessary calculations and entries on 31 December, what are the accumulated depreciation to date and carrying value of the equipment? (Assume that the straight-line method is used) Accumulated depreciation Carrying value as of
As of 31 December 31 December

A) $70 000 $330 000
B) $70 000 $280 000
C) $35 000 $330 000
D) $80 000 $320 000