Barnes Company expects to begin operating on January 1. The company's master budget contained the following operating expense budget: JanuaryFebruaryMarchSalary expenses$36,000 $36,000 $36,000 Sales commissions, 5% of sales 30,000 32,000 24,000 Utilities 2,800 2,800 2,800 Depreciation on store equipment 1,000 1,000 1,000 Rent 7,200 7,200 7,200 Miscellaneous 1,800 1,800 1,800 Total operating expenses$78,800 $80,800 $72,800 Sales commissions are paid in cash in the month following the month in which the expense is recognized. All other expense items requiring cash payment are paid in the month in which they are recognized. The amount of accumulated depreciation appearing on the company's March 31 pro forma balance sheet is:
A. $2,000.
B. $3,000.
C. $1,000.
D. $12,000.
Answer: B
Business
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