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
A debit to Accumulated Depreciation for $400,000.
B debit to Depreciation Expense for $400,000.
C debit to Depreciation Expense for $100,000.
D credit to Accumulated Depreciation for $100,000.