Equipment with a Residual Value of $50,000 at the End

question 77

Multiple Choice

Equipment with a residual value of $50,000 at the end of 10 years was acquired at the beginning of 2011 for $500,000.Assuming the use of the straight-line depreciation method,the journal entry to record depreciation expense for 2012 will have a debit to

• A)Depreciation Expense and a credit to Accumulated Depreciation for $50,000.
• B)Accumulated Depreciation and a credit to Equipment for $50,000.
• C)Depreciation Expense and a credit to Equipment for $45,000.
• D)Depreciation Expense and a credit to Accumulated Depreciation for $45,000.

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Definitions:

Compensation

Payment or rewards given to employees or workers for their services, which can include wages, salaries, benefits, and bonuses.

Money Managers

Professionals who make investment decisions and manage the portfolio of securities for their clients.

Alpha

A measure of the active return on an investment, indicating how much a portfolio has outperformed or underperformed its benchmark index.

CAPM

The Capital Asset Pricing Model, a theory that describes the relationship between the risk of a security and its expected return.