Swifty Corporation applies revaluation accounting to plant assets with a carryin

Question

Swifty Corporation applies revaluation accounting to plant assets with a carrying value of $1620000, a useful life of 4 years, and no salvage value. Depreciation is calculated on the straight-line basis. At the end of year 1, independent appraisers determine that the asset has a fair value of $1520000 The journal entry to record depreciation for year one will include a O credit to Accumulated Depreciation for $100000 O debit to Accumulated Depreciation for $405000. O debit to Depreciation Expense for $100000 O debit to Depreciation Expense for $405000

Explanation / Answer

Depreciation for year 1 = 1620000/4 = $405000 Option 4 debit to Depreciation expense for $405000 is correct

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.