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Zervos Company paid $120,000 for a machine on January 1, 2016. It records $5,000 of depreciation expense on the machine each year. At the end
Zervos Company paid $120,000 for a machine on January 1, 2016. It records $5,000 of depreciation expense on the machine each year. At the end of the second year, what entry would it make to record depreciation?
Debit Machinery for $110,000, Credit Depreciation Expense for $110,000. |
Debit Machinery for $10,000 and Credit Depreciation Expense for $10,000. |
Debit Depreciation Expense for $10,000, Credit Accumulated Depreciation (or Property, Plant and Equipment) for $10,000. |
Debit Depreciation Expense for $5,000, Credit Accumulated Depreciation (or Property, Plant and Equipment) for $5,000. |
None of these answers are correct. |
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