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:

Actual Value

The true or market value of an asset, not influenced by any external conditions, often used in financial and appraisal contexts.

Preemptive Rights

Rights that allow existing shareholders to purchase additional shares before new shares are offered to the public, to maintain their proportionate ownership in the company.

Rights Offering

A corporate event in which a company offers existing shareholders the opportunity to buy additional shares directly from the company at a discounted price, typically to raise capital.