Pizzicletta Pizza Shop purchased a stone pizza oven on January 1, 2018. The oven cost $50,000 and has an estimated salvage value of $10,000. Using the straight-line method of depreciation, annual depreciation expense is computed as $8,000. What is the balance in the Accumulated Depreciation account at the end of 2020 (end of year 3)

Accumulated depreciation = $24,000

Explanation:

Giving the following information:

Using the straight-line method of depreciation, annual depreciation expense is computed as $8,000.

Under the straight-line depreciation method, the annual depreciation remains the same during the useful life.

Accumulated depreciation = annual depreciation*number of years

Accumulated depreciation = 8,000*3 = $24,000