Jing Company Was Started on January 1, Year 1 When

question 3

Multiple Choice

Jing Company was started on January 1, Year 1 when it issued common stock for $33,000 cash. Also, on January 1, Year 1 the company purchased office equipment that cost $15,700 cash. The equipment was delivered under terms FOB shipping point, and transportation cost was $1,800. The equipment had a five-year useful life and a $6,200 expected salvage value.Using double-declining-balance depreciation, what the amount of depreciation expense and the amount of accumulated depreciation, respectively, that would appear on the December 31, Year 3 financial statements?

• A) $0 and $15,300.
• B) $100 and $11,300.
• C) $3,283 and $18,583.
• D) $5,472 and $14,592.

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Definitions:

Scoliosis

A medical condition characterized by an abnormal lateral curvature of the spine.

Lateral Curvature

Lateral curvature, often referring to scoliosis, is a condition characterized by a sideways curvature of the spine that deviates from the normal straight vertical alignment.

Menisci

Curved fibrocartilaginous structures in the knee joint that serve to distribute weight and reduce friction during movement.

Cartilage

A flexible connective tissue found in various forms in the body, including joints, ear structure, and the nose.