Big Rig Delivery Service Has the Following Plant Assets: Communications

question 220

Multiple Choice

Big Rig Delivery Service has the following plant assets: Communications Equipment: Cost,$3,840 with useful life of 8 years; Delivery Equipment: Cost,$17,712 with useful life of 12 years; and Computer: Cost,$12,960 with useful life of 4 years.Assume the residual value of all the assets is zero and the straight-line method is used. Big Rig's monthly depreciation journal entry will include a ________.

• A) debit to Depreciation Expense - Equipment of $5,196
• B) credit to Depreciation Expense - Equipment of $5,196
• C) debit to Accumulated Depreciation - Equipment of $433
• D) credit to Accumulated Depreciation - Equipment of $433

---

Definitions:

Autonomy

The extent to which an individual or job provides freedom, independence, and discretion in scheduling the work and determining the procedures to be used in carrying it out.

Self-directed Work Teams

Groups of employees who are given autonomy to plan and carry out their tasks with minimal direct supervision.

Reward System

Mechanisms within an organization designed to recognize and reinforce employee behavior, contributing to the achievement of company goals.

Corporate Philosophy

The fundamental values, beliefs, and principles that guide an organization's decision-making and behaviors, shaping its culture and identity.