[The Following Information Applies to the Questions Displayed Below

question 81

Multiple Choice

[The following information applies to the questions displayed below.]

On January 1, Year 1, Jing Company purchased office equipment that cost $34,000 cash. The equipment was delivered under terms FOB shipping point, and transportation cost was $2,000. The equipment had a five-year useful life and a $12,000 expected salvage value.


-Assuming the company uses the double-declining-balance depreciation method,what are the amounts of depreciation expense and accumulated depreciation,respectively,that would be reported in the financial statements prepared as of December 31,Year 3?

• A)$0 and $24,000
• B)$960 and $12,000
• C)$8,640 and $23,040
• D)$5,184 and $28,224

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Definitions:

Translation Adjustment

An adjustment made in the process of translating a foreign subsidiary's financial statements into the parent company's reporting currency.

Foreign Currency

Currency used in a country other than one's own, involving exchange risk when converting from one currency to another.

Net Realizable Value

The estimated selling price in the ordinary course of business minus any costs of completion, disposal, and transportation.