On January 1, 2019 Jeacle Corporation acquired equipment for $120,000. The estimated life of the equipment is8 years or 14,000 hours. The estimated residual value is $4,000. If Jeacle uses the straight-line method ofdepreciation, what will be the debit to Depreciation Expense for the year ended December 31, 2020, duringwhich period the asset was used 1,500 hours?Select one:O a.$14,500O b. $15,000O c. $12,429O d. $12,000

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Description: On January 1, 2019 Jeacle Corporation acquired equipment for $120,000. The estimated life of the equipment is8 years or 14,000 hours. The estimated residual value is $4,000. If Jeacle uses the straight-line method ofdepreciation, what will be the de

Under the Straight Line Method (SLM), a fixed portion of the asset is depreciated every year till…

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depreciation, what will be the debit to Depreciation Expense for the year ended December 31, 2020, during which period the asset was used 1,500 hours? Select one: a. $14,500 O b. $15,000 O c. $12,429 O d. $12,000

depreciation, what will be the debit to Depreciation Expense for the year ended December 31, 2020, during which period the asset was used 1,500 hours? Select one: a. $14,500 O b. $15,000 O c. $12,429 O d. $12,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.

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Question

On January 1, 2019 Jeacle Corporation acquired equipment for $120,000. The estimated life of the equipment is
8 years or 14,000 hours. The estimated residual value is $4,000. If Jeacle uses the straight-line method of
depreciation, what will be the debit to Depreciation Expense for the year ended December 31, 2020, during
which period the asset was used 1,500 hours?
Select one:
O a.
$14,500
O b. $15,000
O c. $12,429
O d. $12,000

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