A Machine with a Cost of $20,000, a Salvage Value

Multiple Choice

A machine with a cost of $20,000, a salvage value of $8,000 and expected life of 15 years was purchased on September 1. For a calendar year company, the journal entry to record depreciation expense for the first year would be to:

A) debit Depreciation Expense, $67; credit Accumulated Depreciation, $67.
B) debit Depreciation Expense, $333; credit Accumulated Depreciation, $333.
C) debit Depreciation Expense, $267; credit Accumulated Depreciation, $267.
D) debit Depreciation Expense, $200; credit Accumulated Depreciation, $200.