Use the information above to answer the following question.Which of the following is true about the depreciation recorded?
A)Accumulated depreciation will be debited for $266,667.
B)The net book value of the computer system at December 31,2013 will be $1,225,000.
C)Depreciation expense will be debited for $245,000.
D)The depreciable cost of the computer system is $1,600,000.

Question

Quizplus · Accepted Answer

The depreciation recorded is the depreciation expense, which is $245,000. The accumulated depreciation will increase by this amount, but it is not equal to $266,667 (option A). The net book value of the computer system at December 31, 2013, cannot be determined without knowing its original cost or the amount of accumulated depreciation. Therefore, option B cannot be true. The depreciable cost of the computer system is given as $1,600,000, but this information is not directly relevant to the depreciation recorded. Therefore, option D is incorrect.

Use the Information Above to Answer the Following Question