On July 2 2022 equipment with a cost of $50000 was purchased for cash.The equipment has an estimated salvage value of $6000 and an estimated life of 4 years.It is to be depreciated by the straight-line method.Use the following tabular analysis to determine the adjustment that would be made for depreciation for 2022 assuming the company has a calendar year end.
A)Increase Accumulated Depreciation and decrease Depreciation Expense by $11000.
B)Decrease Equipment and increase Depreciation Expense by $11000.
C)Decrease Equipment and increase Depreciation Expense by $5500.
D)Increase Accumulated Depreciation and Depreciation Expense by $5500.

Question

On July 2 2022 equipment with a cost of $50000 was purchased for cash.The equipment has an estimated salvage value of $6000 and an estimated life of 4 years.It is to be depreciated by the straight-line method.Use the following tabular analysis to determine the adjustment that would be made for depreciation for 2022 assuming the company has a calendar year end. 
A)Increase Accumulated Depreciation and decrease Depreciation Expense by $11000. 
B)Decrease Equipment and increase Depreciation Expense by $11000. 
C)Decrease Equipment and increase Depreciation Expense by $5500. 
D)Increase Accumulated Depreciation and Depreciation Expense by $5500.

Quizplus · Accepted Answer

The Answer of On July 2 2022 equipment with a cost of $50000 was purchased for cash.The equipment has an estimated salvage value of $6000 and an estimated life of 4 years.It is to be depreciated by the straight-line method.Use the following tabular analysis to determine the adjustment that would be made for depreciation for 2022 assuming the company has a calendar year end. 
A)Increase Accumulated Depreciation and decrease Depreciation Expense by $11000. 
B)Decrease Equipment and increase Depreciation Expense by $11000. 
C)Decrease Equipment and increase Depreciation Expense by $5500. 
D)Increase Accumulated Depreciation and Depreciation Expense by $5500.

On July 2 2022 Equipment with a Cost of $50000