Use the Following Information for Questions

question 78

Multiple Choice

Use the following information for questions.
Simpson Company applies revaluation accounting to plant assets with a carrying value of $800,000, 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 $750,000.
-The journal entry to record depreciation for year one will include a

• A)debit to Accumulated Depreciation for $200,000.
• B)debit to Depreciation Expense for $50,000.
• C)credit to Accumulated Depreciation for $50,000.
• D)debit to Depreciation Expense for $200,000.

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Definitions:

Ego

In psychoanalytic theory, the part of the personality responsible for dealing with reality while balancing the demands of the id and superego.

Id

In psychoanalytic theory, the part of the psyche that is the source of instinctual impulses and demands for immediate satisfaction of primitive needs.

Conscious Behavior

Actions that are undertaken with awareness and intent, as opposed to automatically or without thought.

Freud's Research

The pioneering work in psychoanalysis by Sigmund Freud, focusing on unconscious desires, childhood experiences, and personality development.