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.

---

Definitions:

Functional Group

A specific grouping of atoms within a molecule that has a predictable chemical behavior and is responsible for the characteristic reactions of the molecule.

Amine

Organic molecules and functional units which possess a nitrogen atom with a lone pair, exhibiting basic properties.

Molecules

Groups of atoms bonded together, representing the smallest fundamental unit of a chemical compound that can take part in a chemical reaction.

Sodium Hydride

A chemical compound used as a strong base in organic synthesis, represented by the formula NaH.