Company B has non-current assets that were acquired at a cost of 150,000. The estimated useful life for the non-current assets is 15 years. Company B uses the straight-line depreciation method. Regarding the depreciation amount that Company B needs to record every year, which of the following statements is true?

Select one:

a. Company B needs to record a depreciation revenue (debit) of 10,000 and an accumulated depreciation (credit) of 10,000.

b. Company B needs to record a depreciation expense (credit) of 10,000 and an accumulated depreciation (debit) of 10,000.

c. Company B needs to record a depreciation expense (debit) of 10,000 and an accumulated depreciation (credit) of 10,000.

d. The company does not need to record this transaction.

Company A has acquired a machine for 250,000. The estimated useful life for the machine is 10 years and the residual value is 600. Company A uses the straight-line depreciation method. Which is the depreciation amount that Company A needs to record every year?

Select one:

a. Company B needs to record a depreciation revenue (debit) of 24,940 and an accumulated depreciation (credit) of 24,940.

b. None of the answers is true.

c. Company B needs to record a depreciation expense (debit) of 24,940 and an accumulated depreciation (credit) of 24,940.

d. Company B needs to record a depreciation expense (credit) of 25,000 and an accumulated depreciation (debit) of the same amount.