It Is Determined That a Computer's Depreciation Expense for the Year

question 144

Multiple Choice

It is determined that a computer's depreciation expense for the year is $3,500. The journal entry to record this will be:

• A)debit Depreciation Expense - computer $3,500; credit Cash $3,500.
• B)debit Accumulated Depreciation - computer $3,500; credit Cash $3,500.
• C)debit Depreciation Expense - computer $3,500; credit Accumulated Depreciation, $3,500.
• D)debit Cash $3,500; credit Depreciation Expense - computer $3,500.

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Definitions:

Wholly Owned Subsidiary

A firm entirely possessed by another corporation, known as the parent company, holding all of its share capital.

Non-Controlling Interest

A ownership stake in a corporation where the holding gives the investor less than 50% voting power.

Intercompany Profits

Profits derived from transactions between companies within the same group, which may need to be eliminated in consolidated financial statements.

Goodwill

An intangible asset that arises when a business is acquired for more than the fair value of its identifiable net assets; reflects the value of the brand, customer relationships, and reputation.