Ariel Tax Planning Service has the following plant assets: C

Ariel Tax Planning Service has the following plant assets: Communications equipment: Cost, $8,640 with useful life of 8 years; Furniture: Cost, $18,000 with useful life of 12 years; and Computer: Cost, $13,440 with useful life of 4 years

Assume the residual value of all the assets is zero and the straight-line method is used.

Ariel’s monthly depreciation journal entry will include a ________.
A) debit to Depreciation Expense of $5,940
B) credit to Depreciation Expense of $5,940
C) debit to Accumulated Depreciation of $495
D) credit to Accumulated Depreciation of $495

ANSWER

D .Straight-line depreciation = (Cost – Residual value) / Useful life
Straight-line depreciation for: