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:

Master Automotive Technician

A highly skilled professional with advanced knowledge and expertise in diagnosing, repairing, and maintaining automotive vehicles, often holding certifications and extensive experience in the field.

ASE Automotive Certification

Revalidation of professional competence in automotive repair and service, recognized by the National Institute for Automotive Service Excellence.

Customer Service Industries

Sectors focused on the provision of services to meet the needs and expectations of customers, encompassing a wide range of businesses from retail to support.

Automotive Systems

Complex assemblies and networks within a vehicle that work together to ensure its operation, including electrical, engine, and safety systems.