Tina's Event Planning Bought a Computer Worth $4,000 with an Expected

question 46

Multiple Choice

Tina's Event Planning bought a computer worth $4,000 with an expected life of 4 years and a residual value of $800.What is the adjusting journal entry after the first year?

• A)
• \(\begin{array}{|l|l|}
• \hline\text { Computer } & 800 \\
• \hline \text { Depreciation Expense } & 800\\\hline
• \end{array}\)
• B)
• \[\begin{array} { | c | c | }
• \hline \text { Computer } & 800 \\
• \hline \text { Accumulated Depreciation, Computer } & 800 \\
• \hline
• \end{array}\]
• C)
• \[\begin{array} { | c | c | }
• \hline \text { Depreciation Expense } & 800 \\
• \hline \text { Accumulated Depreciation, Computer } & 800 \\
• \hline
• \end{array}\]
• D)
• \(\begin{array}{|l|l|}
• \hline\text { Depreciation Expense } & 800 \\
• \hline \text { Computer } & 800\\\hline
• \end{array}\)

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Definitions:

Net Profit

The amount of money left after all operating expenses, taxes, and interest have been deducted from total revenue.

Absorption Costing Profit

The profit calculated under absorption costing, which includes both variable and fixed manufacturing costs in the cost of a product.

Variable Costing Profit

The profit calculated using the variable costing method, which considers only variable expenses for unit cost calculation, highlighting contribution margin.

Fixed Overhead

Refers to the indirect costs of production that do not change with the volume of output, such as rent, salaries, and insurance.