A Machine with a Cost of $20,000, a Salvage Value

question 123

Multiple Choice

A machine with a cost of $20,000, a salvage value of $8,000 and expected life of 15 years was purchased on September 1. For a calendar year company, the journal entry to record depreciation expense for the first year would be to:

• A)debit Depreciation Expense, $67; credit Accumulated Depreciation, $67.
• B)debit Depreciation Expense, $333; credit Accumulated Depreciation, $333.
• C)debit Depreciation Expense, $267; credit Accumulated Depreciation, $267.
• D)debit Depreciation Expense, $200; credit Accumulated Depreciation, $200.