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On Jan. 1, Alco Company purchases manufacturing equipment costing $95,000 that is expected to have a five-year life and a salvage value of $5,000. Alco
On Jan. 1, Alco Company purchases manufacturing equipment costing $95,000 that is expected to have a five-year life and a salvage value of $5,000. Alco uses the straight-line depreciation method. The adjusting entry needed on Dec. 31 is: Debit Depreciation Expense, $9,000, credit Accumulated Depreciation, $9,000. Debit Depreciation Expense, $18,010, credit Accumulated Depreciation, $18,000. Debit Depreciation Expense, $90,010, credit Accumulated Depreciation, $90,000. Debit Depreciation Expense, $18,000, credit Equipment $18,000. Debit Depreciation Expense, $9,000, credit Equipment, $9,000
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