Depreciation via accumulated depreciation T-account Steps:

• Opening accumulated depreciation = opening cost ($300,000) - opening carrying value ($120,000) = $180,000
• Cost of sold assets = opening cost ($300,000) + purchases ($110,000) - closing cost ($360,000) =$50,000
• Accumulated depreciation on sold assets = cost of sold assets ($50,000) - carrying value of sold assets ($20,000) = $30,000
• Depreciation expense = [closing cost ($360,000) - closing carrying value] - opening accumulated depreciation ($180,000) + accumulated depreciation on sold (75,000 Why D is correct:
• Depreciation expense balances the T-account: closing accum. dep. = opening accum. dep. + expense - dep. on disposals; rearranged, expense = closing accum. dep. - opening + dep. on disposals. Why the others are wrong:
• A. $35,000: Underestimates by ignoring full adjustment for disposals and purchases.
• B. $45,000: Forgets to add back accumulated depreciation removed on disposal ($30,000).
• C. $50,000: Equals cost of sold assets, not the expense charged.

Final answer: D