Question
Presented below is information related to equipment owned by a Company at December 31, 2018. Cost 7,000,000 Accumulated depreciation to date 1,500,000 Value-in-use 5,000,000 Fair
Presented below is information related to equipment owned by a Company at December 31, 2018.
Cost 7,000,000
Accumulated depreciation to date 1,500,000
Value-in-use 5,000,000
Fair value less cost of disposal (selling price) 4,400,000
Assume that the company will continue to use this asset in the future. As of December 31, 2018, the equipment has a remaining useful of 4 years.
What would be the accounting entry to record depreciation in 2019?
Select one:
a. Depreciation Expense.......................................... 1,750,000 Accumulated DepreciationEquipment........ 1,750,000
b. None of the other answers is correct
c. Depreciation Expense.......................................... 1,250,000 Accumulated DepreciationEquipment........ 1,250,000
d. Depreciation Expense.......................................... 1,000,000 Accumulated DepreciationEquipment........ 1,000,000
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