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

question 78

Multiple Choice

Equipment with a residual value of $50,000 at the end of 10 years was acquired at the beginning of Year 1 for $500,000.Assuming the use of straight-line depreciation,how will depreciation expense for Year 2 be recorded in the journal entry?

• A) Depreciation expense will be debited and accumulated depreciation will be credited for $50,000.
• B) Accumulated depreciation will be debited and equipment will be credited for $50,000.
• C) Depreciation expense will be debited and equipment will be credited for $45,000.
• D) Depreciation expense will be debited and accumulated depreciation will be credited for $45,000.

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Definitions:

Reliable

Describes something or someone that consistently performs well or maintains effectiveness over time, often used to refer to products, services, or information.

Desired Date

The specific day or time a person or organization wishes an event to occur or a task to be completed.

Specifications

Detailed descriptions of the technical and quality requirements for materials, products, or services, ensuring standards are met.

Commodity Exchange

A centralized trading platform where commodities, such as agricultural products, metals, and energy products, are bought and sold through contracts.