In 2016,management Discovered That Dual Production Had Debited Expense for the Full

question 76

Multiple Choice

In 2016,management discovered that Dual Production had debited expense for the full cost of an asset purchased on January 1,2013,at a cost of $36 million with no expected residual value.Its useful life was 5 years.Dual uses straight-line depreciation.The correcting entry,assuming the error was discovered in 2016 before preparation of the adjusting and closing entries,includes:

• A)A debit to accumulated depreciation of $14.4 million
• B)A credit to accumulated depreciation of $21.6 million.
• C)A credit to an asset of $36 million.
• D)A debit to retained earnings of $14.4 million.

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Definitions:

Oligopoly

A market structure in which a few companies dominate the industry, often leading to limited competition.

Human Relations

The study and practice of improving interactions among people, especially in a workplace or organizational setting.

Management

The act of coordinating and overseeing the operations of an organization or project, ensuring effective use of resources to meet objectives.