Identify the Journal Entry Required to Correctly Record Each of the Following

question 22

Short Answer

Identify the journal entry required to correctly record each of the following transactions.
-Depreciation expense on motor vehicles for the year incurred.
A. DR Motor vehicles $\quad$ CR Accumulated depreciation

B. DR Accumulated depreciation $\quad$ CR Depreciation expense $\quad$
C. DR Depreciation expense $\quad$ CR Motor vehicles
D. DR Depreciation expense $\quad$ $\mathrm { CR }$ Accumulated depreciation

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Definitions:

Tax Rate

The percentage at which an individual or corporation is taxed, often varying by income level, legal entity, or country.

CCA Class

In Canadian tax law, refers to the classification of depreciable property for purposes of calculating capital cost allowance, which is a type of depreciation for tax purposes.

Net Advantage

The total benefit gained from a particular action or decision, minus the costs incurred.

Corporate Tax Rate

The percentage of a corporation's income that is paid to the government as tax.