All categories

3 years ago

When recording depreciation, which of the following statements is true?

Business

1 answer:

professor190 [17]3 years ago

5 0

Answer:

D. None of the above are true.

Explanation:

As while recording depreciation, the total assets is decreased and the stockholder equity is also decreased as depreciation is a contra asset account

In the side of stockholder equity, the net income, the retained earning and the stockholder equity is decreased

whereas, the total asset is decreased as the amount of asset is reduced by deducting the accumulated depreciation amount

The journal entry is shown below for better understanding

Depreciation Expense A/c XXXXX

To Accumulated Depreciation XXXXX

(Being depreciation expense is recorded)

You might be interested in

Privo Co. purchases a machine that cost $15,000. Privo estimates a 5-year life with no salvage value. The first three years of d

Ierofanga [76]

Answer:

Double-declining balance method

Explanation:

First we have to find the depreciation rate which is shown below:

= One ÷ useful life

= 1 ÷ 4

= 20%

Now the rate is double So, 40%

In year 1, the original cost is $15,000, so the depreciation is $6,000 after applying the 50% depreciation rate

And, in year 2, the depreciation is ($15,000 - $6,000) × 40% = $3,600

And, in year 3, the depreciation is ($15,000 - $6,000 - $3,600) × 40% = $2,160

6 0

3 years ago

Consumer surplus:

elena-14-01-66 [18.8K]

Consumer surplus is the difference between the maximum amount the consumer is willing to pay for the price of the good and the price that was actually paid by the consumer or commonly known as the current market price. The price that the consumer is willing to pay is determined by the demand curve in the market.

8 0

3 years ago

Read 2 more answers

When money is acting as a store of value, it allows an individual toA. exchange goods for other goods and services in the econom

Ne4ueva [31]

Answer:

The answer is (B) transfer dollars, and therefore purchasing power, into the future.

Explanation:

A store of value is best described as a function contained in an asset that allows it to be saved, retrieved, and traded in the future. Money provides this function, alongside other forms of assets such as bonds, gemstones, and precious metals. Other functions of money, include as a medium of exchange and a unit of account.

5 0

3 years ago

True or false A coupon is the stated interest on a corporate, municipal, or government bond.

dem82 [27]

This statement is true. A coupon rate is a stated interest on a corporate, municipal, or government bond. A bond is a contract to repay the borrowed or owed money and all of its interests for any future investments.

8 0

3 years ago

Recently, the owner of Martha's Wares encountered severe legal problems and is trying to sell her business. The company built a

Dovator [93]

Answer:

$523,644

Explanation:

The computation of the market value of this firm is shown below;

Asset at realizable value amount ($)

Building appraised value $1,300,000

Equipment current value $327,000

Inventory Market value ($270000 ÷ 2) $135,000

Accounts receivables ($155,200 × 97%) $150,544

Cash $11,100

Total assets gross available $1,923,644

(-) Owings -$1,400,000

The Market value of the firm $523,644

4 0

3 years ago