Prego Would Report Depreciation in 2010 Of

question 14

Multiple Choice

Prego would report depreciation in 2010 of:

• A)$135,230.
• B)$126,000.
• C)$108,000.
• D)$105,000.Depreciation in 2010 = [($450,000 36,000) (70,000 + 160,000)] = $1.80 per unit 70,000 = $126,000

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Definitions:

Journal Entries

Records of financial transactions in the accounting system, documenting the details of transactions and their impact on the accounts.

Debits

A transaction recorded in accounts that causes assets to grow or liabilities to shrink on a firm's balance sheet.

Credits

Accounting entries that increase liability or equity accounts, or decrease asset or expense accounts.

Liabilities

Financial obligations or debts that a company owes to others, which must be settled over time through the transfer of assets, provision of services, or other means.