In 2021, StartUp Inc

question 42

Multiple Choice

In 2021, StartUp Inc. (SU) set up a new manufacturing facility in Manitoba. To encourage SU to set up its factory, the province provided equipment with a fair market value of $45,000 and an estimated useful life of 5 years using straight-line depreciation. What journal entry would be required in fiscal 2022, if the net method is used?

• A)No entry is required.
• B)A credit to other comprehensive income - donated assets of $9,000.
• C)A credit to deferred income of $9,000.
• D)A credit to accumulated depreciation for $9,000.

---

Definitions:

Primary Amine

Primary amines are organic compounds containing an amino group (-NH2) attached to a primary carbon atom, involved in a wide range of chemical reactions.

Nitrogen Atom

The basic unit of nitrogen, an element with an atomic number of 7, and essential for life as a constituent of amino acids and nucleic acids.

Organic Compound

A chemical compound containing carbon atoms bonded to hydrogen atoms, possibly alongside other elements, usually found in living organisms.

Butylamine

A primary amine with the formula C4H9NH2, used as an intermediate in the synthesis of pharmaceuticals, pesticides, and other chemicals.