19. The entry to record depreciation for this same asset in year two will include a A. debit to Accumulated Depreciation for $400,000 B. debit to Depreciation Expense for $500,000, C. credit to Accumulated Depreciation for $300,000. D. debit to Depreciation Expense for $400,000. 20. You are the controller of a company that has iust switched to IFRS. For the area of PP&E you have asked the programmer for the PP&E system to include a routine that forces users to re- enter information each year. For which field would it be appropriate to include in this routine. A. Asset name B. Date placed in service C. Cost D. Residual value Use the following information for questions 21 and 22 A company uses the cost method for all of its fixed assets. A machine was purchased on January 1, 2015, for S100,000. The company believes the machine will not have any net salvage value at the end of its 10-year useful life. The machine is depreciated using the straight-line depreciation method. At December 31, 2016, the machine is deemed impaired and written down by $24,000. At December 31, 2018, the fair value of the machine is $70,000 and selling costs are minimal. 21. What is the recorded net value of this machine on December 31, 2018, using IFRS? A. $42,000 $60,000 $70,000 None of the above. B. C. D. 22. What is the recorded net value of this machine on December 31, 2018, using US GAAP? $42,000 $60,000 $70,000 None of the above. A B. C. D. 23. IFRS distinguishes between sales-type and direct financing leases for lessors. A. True B. False 24. IFRS requires lessees to use their incremental rate, unless the implicit rate is known by the lessee and the implicit rate is lower than the incremental rate. A. True B. False 5