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The estimated annual depreciation of the property and equipment is 10% per year of its acquisition cost. The library is part of the doctor’s investment at the start of his practice on January 1, 2010 while the medical equipment were acquired in two groups: 48,000 was acquired August 1, 2010 and the balance was acquired six months after the first acquisition.

 

Given:

Library 155,000 (debit)

Accumulated Deprecation- Library 15,500 (credit)

Medical Equipment 96,000 (debit)

Accumulated Depreciation- Equipment 2,000 (credit)

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