If an Asset Costs $41,000,has a Residual Value of $3,000,and

question 110

Multiple Choice

If an asset costs $41,000,has a residual value of $3,000,and has a useful life of five years,the entry to record depreciation in the second year,using the double-declining-balance method,is

• A)debit to Depreciation Expense,9,430;credit to Cash,9,430.
• B)debit to Depreciation Expense,9,840;credit to Accumulated Depreciation,9,840
• C)debit to Depreciation Expense,10,250;credit to Accumulated Depreciation,10,250
• D)debit to Accumulated Depreciation,10,660;credit to Depreciation Expense,10,660

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Definitions:

Futures Contracts

Futures Contracts are legal agreements to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future, widely used for hedging and speculative purposes.

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A unit of volume that is commonly used in agriculture, especially for measuring grains.

Interest Rates

The proportion of a loan or savings amount that is charged as interest to the borrower, typically expressed as an annual percentage.

Put Option

A monetary contract enabling the holder the choice, though not the requirement, to sell an established amount of a base asset at a predetermined rate within a set timeframe.