On January 1, 2012, Lasche Auto Sales and Service Purchased $\quad$

question 5

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.Which of the following is the journal entry to record their depreciation expense for 2014?
A. Dr. Depreciation expense $\quad$$\quad$$\quad$ 5,000
$\quad$$\quad$ Cr. Accumulated depreciation $\quad$$\quad$$\quad$$\quad$ 5,000
B. Dr. Depreciation expense $\quad$$\quad$$\quad$ 10,000
$\quad$$\quad$ Cr. Accumulated depreciation $\quad$$\quad$$\quad$ 10,000
C. Dr. Depreciation expense $\quad$$\quad$$\quad$ 5,000
$\quad$$\quad$ Cr. Capital assets $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ 5,000
D. Dr. Accumulated Depreciation $\quad$ 5,000
$\quad$$\quad$ Cr. Depreciation expense $\quad$$\quad$$\quad$$\quad$$\quad$ 5,000

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

---

Definitions:

Explanation

The act of making something clear or understandable through detailed information or reasons.

Management

The process of dealing with or controlling things or people, often within a business or organization.

Scientific Management

A management theory that analyzes and synthesizes workflows to improve economic efficiency, especially labor productivity.

Frederick Taylor

A mechanical engineer who is considered the father of scientific management, focusing on improving economic efficiency and labor productivity through systematic study.