Tongas Company applies revaluation accounting to plant assets with a carrying value of $1,600,000, 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 $1,500,000.
The journal entry to record depreciation for year one will include a
debit to Accumulated Depreciation for $400,000.
debit to Depreciation Expense for $400,000.
debit to Depreciation Expense for $100,000.
credit to Accumulated Depreciation for $100,000.
Tongas Company applies revaluation accounting to plant assets with a carrying value of $1,600,000,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 $1,500,000
The journal entry to record depreciation for year one will include a
debit to Accumulated Depreciation for $400,000
debit to Depreciation Expense for$400,000.
debit to Depreciation Expense for$100,000.
credit to Accumulated Depreciation for $100,000