A Machine Is Purchased and Used Throughout Its Predicted Useful

question 76

Multiple Choice

A machine is purchased and used throughout its predicted useful life of five years.The depreciable cost equals $50,000.The company uses the straight-line method.How would the company record the adjusting entry to record the depreciation on this machine at the end of each of the years in its useful life?

• A)Debit Machinery for $50,000 and credit Cash for $50,000.
• B)Debit Machinery Expense for $10,000 and credit Machinery for $10,000.
• C)Debit Depreciation Expense for $10,000 and credit Accumulated Depreciation-Machinery for $10,000.
• D)Debit Accumulated Depreciation-Machinery for $10,000 and credit Depreciation Expense for $10,000.
• E)Debit Depreciation Expense for $10,000 and credit Machinery for $10,000.

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Definitions:

Gross National Product

The total value of all goods and services produced by a country's residents over a specific time period, including international activities.

Preventable Cause

A factor or an event leading to a condition or situation that can be avoided through specific measures or interventions.

Mortality

The state of being subject to death; often used in statistics to refer to the death rate within a population.

Sex Characteristic

Traits associated with male or female bodies that are not directly linked to reproduction, such as breast development in females or facial hair in males.