Respuesta :
Answer:
Dr. Depreciation Expense 40,000
Cr. Accumulated Depreciation 40,000
Explanation:
Annual depreciation charge=cost-salvage value/useful life
cost is $1,000,000
salvage value is $200,000
useful life is 20 years
annual depreciation charge=($1,000,000-$200,000)/20=$40,000
every year end the depreciation expense account would debited with $40,000 while the accumulated depreciation would be credited with same amount.
The correct option is the last option,Dr depreciation expense $40,000 and Cr accumulated depreciation $40,000.
At the point there is no point posting directly into the asset account since the accumulated depreciation account is an offsetting account against the asset account in the balance sheet
Answer:
Debit depreciation expense account with $40,000
Credit Accumulated Depreciation with $40,000
Explanation:
BOC purchased the building last year.
This year makes it the 2nd year this building has been purchased
The asset value is $1,000,000
Less The Salvage Value is $200,000
The Depreciable value of Asset is $800,000
Life span of Asset is 20years.
Meaning every year, depreciation expense will be $800,000 divided by 20 = $40,000.
At the end of this year, the depreciation charge will be posted thus:
Debit depreciation expense account with $40,000
Credit Accumulated Depreciation with $40,000
