After the adjustment for depreciation has been made, the original cost of the equipment
A) increases with a credit.
B) decreases with a debit.
C) remains the same.
D) None of these answers are correct.

Question

Quizplus · Accepted Answer

The original cost of the equipment remains the same after the adjustment for depreciation has been made. Depreciation expense is recorded to allocate the cost of the asset over its useful life, but the historical cost of the asset itself does not change in the accounting records.

After the Adjustment for Depreciation Has Been Made, the Original