Question

JMJ QUIZ: 100 pts possible Big Rig Delivery Service has the following plant assets Communications Equpment Cost 57 580 with uselule of years Delivery Equipment Cost $18,000 with useful We of 12 years, and Computer Cost $13.440 with useful life of 4 years Assume the residual value of all the assets is zero and the straight-line method is used Big Rig's monthly depreciation journal entry will include a Cash Basi OA debit to Accumulated Dopreciation - Equipment of $485 it's an easi OB credit to Depreciation Expense - Equpment of $5820 to follow O C credit to Accumulated Depreciation - Equipment of $485 tracking a D. debit to Depreciation Expense - Equipment of $5,820 lolity Time Perid

Answer 1

Ans;

The answer is C. credit to Accumulated Depreciation

$485

Depreciation is calculated as follows:

Equipment = $7,680/8 = $960

Delivery Equipment = $18000/12 = $1,500

Computer = $13,440/4 = $3,360

Total Depreciation for the year = $5,820

For the month = $5,820/12 = $485