Multiple Choice
On January 1, 2007, Gregg Corp. acquired a machine at a cost of $500,000. It is to be depreciated on the straight-line method over a five-year period with no residual value. Because of a bookkeeping error, no depreciation was recognized in Gregg's 2007 financial statements. The oversight was discovered during the preparation of Gregg's 2008 financial statements. Depreciation expense on this machine for 2008 should be
A) $0.
B) $100,000.
C) $125,000.
D) $200,000.
Correct Answer:
Verified
Correct Answer:
Verified
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