Multiple Choice
Sonya's Fabrics purchased display equipment two years ago on 1 January for $10 000. Its expected useful life was five years, and its residual value $1000. To record the depreciation for the current year just ended on 31 December, what would be the accounting entry, using the straight-line method?
A) Increase both depreciation expense and accumulated depreciation by $2000.
B) Increase depreciation expense and decrease equipment, both by $1000.
C) Increase depreciation expense and increase accumulated depreciation by $1800.
D) Decrease both depreciation expense and accumulated depreciation by $1000.
Correct Answer:
Verified
Correct Answer:
Verified
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