Use the Following Information to Answer the Question(s) Below

question 44

Multiple Choice

Use the following information to answer the question(s) below.

On January 1, 2012, Shrimp Corporation purchased a delivery truck with an expected useful life of five years, and a salvage value of $8,000. On January 1, 2014, Shrimp sold the truck to Pacet Corporation. Pacet assumed the same salvage value and remaining life of three years used by Shrimp. Straight-line depreciation is used by both companies. On January 1, 2014, Shrimp recorded the following journal entry:

-In preparing the consolidated financial statements for 2014,the elimination entry for depreciation expense was a

• A)debit for $5,000.
• B)credit for $5,000.
• C)debit for $15,000.
• D)credit for $15,000.

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Definitions:

Neisser

A psychologist known for his work in cognitive psychology and his contributions to the understanding of memory and cognition.

Laboratory Studies

Research conducted in a controlled environment where variables can be manipulated to observe their effects on the subject.

Flashbulb Memory

A phenomenon in which people recall their personal circumstances (e.g., where they were, whom they were with, what they were doing) at the time they heard of or witnessed an unexpected and very significant event (e.g., an assassination, a natural disaster).

Everyday Memory Experience

Pertains to the recall and recognition of daily events and interactions, which can vary greatly in terms of complexity and emotional impact.