Frederik Company Owns Specialized Equipment with an Original Cost of $235,000

question 207

Multiple Choice

Frederik Company owns specialized equipment with an original cost of $235,000. The company has fully depreciated the asset over the past 5 years and has now made the decision to retire the asset. Which journal entry would be required to record the retirement of this equipment?

• A) Debit to Equipment and credit to Accumulated Depreciation-Equipment for $235,000
• B) Debit Depreciation Expense and credit Accumulated Depreciation-Equipment for $235,000
• C) Debit Accumulated Depreciation-Equipment and credit Depreciation Expense for $235,000
• D) Debit to Accumulated Depreciation-Equipment and credit to Equipment for $235,000

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Definitions:

Round-Trip

Refers to a journey or transport route that goes from one place to another and then returns to the starting point.

Work Centers

Specific areas or stations in a manufacturing facility where a particular process or set of tasks is performed.

Office Spaces

Physical locations or areas where administrative work is performed, typically within a building dedicated to hosting various business activities.

Financial Aid

Monetary assistance offered to individuals or organizations, often for education, which can come in the form of grants, scholarships, loans, or subsidies.