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Use the following information to answer Questions 28-30: On January 2, 2016, a company purchases a machine for $11,000 and estimates that it will have
Use the following information to answer Questions 28-30: On January 2, 2016, a company purchases a machine for $11,000 and estimates that it will have a 10-year life and a residual value of $1,000. It is depreciating the machine for book purposes under the straight-line method. 4,000 29. What is the journal entry to record depreciation for a manufacturing company that uses the machine entirely for the production of inventory? a. Depreciation Expense 1,000 Accumulated Depreciation-Machine 1,000 b. Inventory-Work-In-Process OH 1,000 Accumulated Depreciation-Machine 1,000 c. Depreciation Expense 1,000 Inventory-Work-In-Process OH 1,000 d. Inventory-Work-In-Process OH 4,000 Accumulated Depreciation-Machine 30. How is depreciation recorded for a manufacturer using the machine 70% for the production of inventory? a. Inventory-Work-In-Process OH 700 Depreciation Expense 300 Accumulated Depreciation-Machine 1,000 b. Inventory-Work-In-Process OH 1,000 Accumulated Depreciation-Machine 1,000 c. Inventory-Work-In-Process OH 3,600 Depreciation Expense 400 Inventory-Work-In-Process OH 4,000 d. Depreciation Expense 1,000 Accumulated Depreciation-Machine 1,000
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