Big Rig Delivery Service Has the Following Plant Assets: Communications

Multiple Choice

Big Rig Delivery Service has the following plant assets: Communications Equipment: Cost,$3,840 with useful life of 8 years; Delivery Equipment: Cost,$17,712 with useful life of 12 years; and Computer: Cost,$12,960 with useful life of 4 years.Assume the residual value of all the assets is zero and the straight-line method is used. Big Rig's monthly depreciation journal entry will include a ________.

A) debit to Depreciation Expense - Equipment of $5,196
B) credit to Depreciation Expense - Equipment of $5,196
C) debit to Accumulated Depreciation - Equipment of $433
D) credit to Accumulated Depreciation - Equipment of $433