Tinsel Inc. purchased equipment on January 1, 20X1 for $15,000 and immediately sold it to it's parent, Pretzel Inc. for $20,000. The equipment is expected to have a remaining useful life of five years. On December 31, 20X1, the parent will record depreciation expense on this equipment as follows: Multiple choice question. Debit to Deprecation Expense $1,000; Credit to Accumulated Deprecation $1,000 Debit to Deprecation Expense $4,000; Credit to Accumulated Deprecation $4,000 Debit to Deprecation Expense $3,000; Credit to Accumulated Deprecation $3,000

Answer rating: 100% (QA)

Debit to Depreciation Expense 3000 Credit to Accumulated Depreciation 300... View the full answer