Flagler Company purchased equipment that cost $90,000. The equipment had a useful life of 5 years and
Fantastic news! We've Found the answer you've been seeking!
Question:
Flagler Company purchased equipment that cost $90,000. The equipment had a useful life of 5 years and a $10,000 salvage value. Flagler used the double-declining-balance method to depreciate its assets. Which of the following choices accurately reflects how the recognition of the first year's depreciation would affect the company's financial statements?
| Assets | = | Liab. | + | Equity | Rev. | − | Expenses | = | Net Inc. | Cash Flow | |||||||
| A. | (32,000 | ) | = | NA | + | (32,000 | ) | NA | − | 32,000 | = | (32,000 | ) | (32,000 | ) | OA | |
| B. | (16,000 | ) | = | NA | + | (16,000 | ) | NA | − | 16,000 | = | (16,000 | ) | NA | |||
| C. | (36,000 | ) | = | NA | + | (36,000 | ) | NA | − | 36,000 | = | (36,000 | ) | (36,000 | ) | OA | |
| D. | (36,000 | ) | = | NA | + | (36,000 | ) | NA | − | 36,000 | = | (36,000 | ) | NA | |||
Expert Answer:
Related Book For 
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
