A Business Purchased Equipment for $145,000 on January 1,2019

question 111

Multiple Choice

A business purchased equipment for $145,000 on January 1,2019.The equipment will be depreciated over the five years of its estimated useful life using the straight-line depreciation method.The business records depreciation once a year on December 31.Which of the following is the adjusting entry required to record depreciation on the equipment for the year 2019? (Assume the residual value of the acquired equipment to be zero.)

• A) Debit $145,000 to Equipment, and credit $145,000 to Cash.
• B) Debit $145,000 to Depreciation Expense-Equipment, and credit $145,000 to Accumulated Depreciation-Equipment.
• C) Debit $29,000 to Depreciation Expense-Equipment, and credit $29,000 to Accumulated Depreciation-Equipment.
• D) Debit $29,000 to Depreciation Expense, and credit $29,000 to Equipment.

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Definitions:

Overdose

The ingestion or application of a drug or other substance in quantities greater than are recommended or generally practiced, leading to a severe or potentially lethal reaction.

Oral Pain Medications

Drugs taken by mouth to reduce or eliminate pain.

Patient-Controlled Analgesia (PCA)

A method of pain management that allows patients to self-administer preset doses of pain medication, typically via an IV pump.

Overdosing

Taking an excessive and potentially harmful dose of a substance, such as medication or drugs.