On January 1, 2012, Lasche Auto Sales and Service Purchased

question 83

Multiple Choice

On January 1, 2012, Lasche Auto Sales and Service purchased a vehicle for use in the business at a cost of $22,000.The vehicle has a 4-year useful life with an expected residual value of $2,000.The company has a December 31 year-end and uses straight-line depreciation for all capital assets.What are the balances in the capital asset and accumulated depreciation account (after adjusting entries) on December 31, 2014? $\begin{array}{lll}&\text {Capital }&\text { Accumulated}\\&\text { Assets }&\text {Depreciation }\\\text { A) } & \$ 22,000 & \$ 15,000 \\\text { B) } & \$ 22,000 & \$ 16,500 \\\text { C) } &\$ 20,000 & \$ 15,000 \\\text { D) }& \$ 20,000 & \$ 16,500\end{array}$

• A)Option A
• B)Option B
• C)Option C
• D)Option D

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Definitions:

Electrolyte

A material that, when dissolved in a polar solvent like water, yields a solution capable of conducting electricity.

Compound

A substance made up of two or more different elements that are chemically bonded together.

Total Ionic Equation

An equation that shows all the soluble ionic substances in a chemical reaction as they exist as ions in a solution.

Molarity

A measure of the concentration of a solute in a solution, defined as the number of moles of solute per liter of solution.