Intermediate Accounting I

14. On 4/1/19, Gimmel Inc purchased equipment for $110,000. The equipment had an estimated salvage value of $10,000 and an estimated useful life of 3 years. Gimmel uses the sum of the years digits depreciation method. How much is the accumulated depreciation on this equipment as of 12/31/20?

a) $83,333

b) $75,000

c) $37,500

d) $33,333