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Tongas Company applies tevaluation accounting to plant assets with a canying value of $1,600,000, a useful life of 4 years, and no salvage value.
Tongas Company applies tevaluation accounting to plant assets with a canying value of $1,600,000, a useful life of 4 years, and no salvage value. Depreciation calculated on the straight-line basis. At the end of year 1. independent appraisers determine that the assot has a fair value of $1.500.000. The Journal entry to record depreciation for year one will include a Odebit to Accumulated Depreciation for $400,000 Odebit to Depreciation Expense for $100,000 O credit to Accumulated Depreciation for $100,000 O debit to Depreciation Expense for $400,000
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