Multiple Choice
Three years ago a piece of equipment was purchased for $10,000. Assuming an eight-year life and straight-line depreciation, financial statements for the third year will show:
A) depreciation expense of $3,000 on the income statement, and accumulated depreciation of $3,000 on the balance sheet.
B) depreciation expense of $1,250 on the income statement, and accumulated depreciation of $3,000 on the balance sheet.
C) depreciation expense of $1,250 on the income statement, and accumulated depreciation of $3,750 on the balance sheet.
D) depreciation expense of $1,250 on the income statement, and accumulated depreciation of $1,250 on the balance sheet.
Correct Answer:
Verified
Correct Answer:
Verified
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