Equipment with a Residual Value of $50,000 at the End

question 177

Multiple Choice

Equipment with a residual value of $50,000 at the end of 10 years was acquired at the beginning of 2011 for $500,000. Assuming the use of the straight-line depreciation method, the journal entry to record depreciation expense for 2013 will have a debit to

• A)depreciation Expense and a credit to Accumulated Depreciation for $50,000.
• B)accumulated Depreciation and a credit to Equipment for $50,000.
• C)depreciation Expense and a credit to Equipment for $45,000.
• D)depreciation Expense and a credit to Accumulated Depreciation for $45,000.

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