Use the Following Information for Questions

question 36

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 entry to record depreciation for this same asset in year two will include a

• A)debit to Accumulated Depreciation for $200,000.
• B)debit to Depreciation Expense for $250,000.
• C)credit to Accumulated Depreciation for $150,000.
• D)debit to Depreciation Expense for $200,000.

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