1.Happy Inc. uses the double declining methods of depreciation and calculates that the year 1 depreciation to be recorded is $85,000 on a newly purchased piece of equipment.

What journal entry below would correctly record this $85,000 of depreciation expense?

a.Dr. Accumulated Depreciation Cr. Equipment

b.Dr. Depreciation Expense Cr. Equipment

c.Dr. Accumulated Depreciation Cr. Depreciation Expense

d.Dr. Depreciation Expense Cr. Accumulated Depreciation

2. Widget Incorporated purchased factory equipment on January 1,2020, for $98,000. It is estimated that the equipment will have a $3,000 salvage value at the end of its 10-year useful life. Using the straight-line method of depreciation

The amount to be recorded as yearly/ annual depreciation expense at Dec 31, 2020 (End of Year 8) is:

a.$19,600

b.$9,500

c.$19,000

d.$9,800