If a Fixed Asset, Such as a Computer, Were Purchased

Multiple Choice

If a fixed asset, such as a computer, were purchased on January 1 for $3,750 with an estimated life of 3 years and a salvage or residual value of $150, the journal entry for monthly expense under straight-line depreciation is

A) Accumulated Depreciation Depreciation Expense
1,200
1,200
B) Depreciation Expense Accumulated Depreciation
1,200
1,200
C) Accumulated Depreciation Depreciation Expense
100
100
D) Depreciation Expense Accumulated Depreciation
100
100