Questions 7 Through 10 Are Based on the Following Information

question 52

Multiple Choice

Questions 7 through 10 are based on the following information:
Tongas Company applies revaluation accounting to plant assets with a carrying value of $1,600,000, a useful life of 4 years, and no salvage value. Depreciation is calculated on the straight-line basis. At the end of year 1, independent appraisers determine that the asset has a fair value of $1,500,000.
-The entry to record depreciation for this same asset in year two will include a

• A) debit to Accumulated Depreciation for $400,000.
• B) debit to Depreciation Expense for $500,000.
• C) credit to Accumulated Depreciation for $300,000.
• D) debit to Depreciation Expense for $400,000.

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Definitions:

Reassurance

A communication technique used to alleviate fear or anxiety, often by providing comfort or information to dispel concerns.

PTSD

Post-Traumatic Stress Disorder, a mental health condition triggered by experiencing or witnessing a terrifying event, characterized by flashbacks, nightmares, severe anxiety, and uncontrollable thoughts about the event.

DSM-5

The Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, a manual published by the American Psychiatric Association that provides a common language and standard criteria for the classification of mental disorders.

Traumatic Stressor

Any event or situation that causes intense psychological stress or trauma, potentially leading to mental health disorders like PTSD.