If a Fixed Asset, Such as a Computer, Were Purchased $\begin{array} { l l l } \text { Depreciation Expense } & 100 \\\text { Accumulated Depreciation } & & 100\end{array}$

question 117

Multiple Choice

If a fixed asset, such as a computer, were purchased on January 1 for $3,750 with an estimated life of 3 years and a salvage or residual value of $150, the journal entry for monthly expense under straight-line depreciation is

• A)
• \(\begin{array} { l l l }
• \text { Depreciation Expense } & 100 \\
• \text { Accumulated Depreciation } & & 100
• \end{array}\)
• B)
• \(\begin{array} { l l l }
• \text { Depreciation Expense }& 1,200 \\
• \text { Accumulated Depreciation }& 1,200
• \end{array}\)
• C)
• Accumulated Depreciation \(\quad 1,200\)
• Depreciation Expense \(\quad 1,200\)
• D)
• \(\begin{array}{lll}
• \text { Accumulated Depreciation }& 100 \\
• \text { Depreciation Expense }& 100
• \end{array}\)

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Definitions:

Budgeted Beginning Inventory

The estimated value or quantity of inventory that a company plans to have on hand at the start of a period.