Diversity Ltd. has acquired a machine for 360, 000 on 01/01/2020. The estimated useful life for...

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Diversity Ltd. has acquired a machine for £360, 000 on 01/01/2020. The estimated useful life for the machine is 10 years and the residual value is £60, 000. Diversity Ltd. uses the straight-line depreciation method. Which is the depreciation entry that Diversity Ltd. needs to on 31/12/2020 (the accounting year- end)? O a. Diversity Ltd. needs to record a depreciation expense (credit) of £36, 000 and an accumulated depreciation (debit) of the same amount. O b. Diversity Ltd. needs to record a depreciation expense (debit) of £30, 000 and an accumulated depreciation (credit) of £36, 000. O c. Diversity Ltd. will record the depreciation journal entry only after two years of using the non- current asset. O d. None of the answers is true. Diversity Ltd. has acquired a machine for £360, 000 on 01/01/2020. The estimated useful life for the machine is 10 years and the residual value is £60, 000. Diversity Ltd. uses the straight-line depreciation method. Which is the depreciation entry that Diversity Ltd. needs to on 31/12/2020 (the accounting year- end)? O a. Diversity Ltd. needs to record a depreciation expense (credit) of £36, 000 and an accumulated depreciation (debit) of the same amount. O b. Diversity Ltd. needs to record a depreciation expense (debit) of £30, 000 and an accumulated depreciation (credit) of £36, 000. O c. Diversity Ltd. will record the depreciation journal entry only after two years of using the non- current asset. O d. None of the answers is true.

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Option DNone of the answers is true is the correct answer The following is the ... View the full answer