Question
On Jan 1st Mary's Hair Salon buys a computer for $2,000 and pays $500 to have it set up and some software installed on it.
On Jan 1st Mary's Hair Salon buys a computer for $2,000 and pays $500 to have it set up and some software installed on it. She pays cash and properly records a credit to Cash and a debit to PPE. Her accountant tells her it has a useful life of 5 years. What entry does Mary make to record the Depreciation at the end of the year?
Select one:
a.Debit Depreciation Expense $400 Credit Accumulated Depreciation $400
b.Debit Depreciation Expense $500 Credit Accumulated Depreciation $500
c.Debit Accumulated Depreciation $400 Credit Depreciation Expense $400
d.Debit Accumulated Depreciation $500 Credit Depreciation Expense $500
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