[The Following Information Applies to the Questions Displayed Below

question 20

Multiple Choice

[The following information applies to the questions displayed below.]
On April 30,2017,Tilton Products purchased machinery for $88,000.The useful life of this machinery is estimated at 8 years,with an $8,000 residual value.
-Assume that in its financial statements,Tilton Products uses straight-line depreciation and rounds depreciation for fractional years to the nearest month.Depreciation expense recognized on this machinery in 2017 and 2018 will be:

• A)$2,333 in 2017 and $7,000 in 2018.
• B)$5,833 in 2017 and $10,000 in 2018.
• C)$6,667 in 2017 and $10,000 in 2018.
• D)$10,000 in 2017 and $10,000 in 2018.

---

Definitions:

Debit

An accounting entry that results in either an increase in assets or a decrease in liabilities on a company's balance sheet.

Dividends Declared

Profits distributed by a company to its shareholders, usually determined by the board of directors, and not yet paid out.

Normal Balance

The side (debit or credit) of an account that is typically increased; for assets and expenses, it's a debit; for liabilities, equity, and revenue, it's a credit.

Debit

An entry recorded on the left side of an account in bookkeeping, indicating an increase in assets or expenses or a decrease in liabilities, equity, or income.