Use the information above to answer the following question.Which of the following is correct about the depreciation recorded?
A) Accumulated Depreciation will be debited for $266,667.
B) The book value of the computer system at December 31, 2015 will be $1,225,000.
C) Depreciation expense will be debited for $245,000.
D) The depreciable cost of the computer system is $1,600,000.

Question

Quizplus · Accepted Answer

According to the information given, the depreciation expense for the computer system is $245,000, which means that option C is correct. The other options are incorrect because: 
A) Accumulated depreciation is the total amount of depreciation recorded so far for an asset, and it is a credit balance. In this case, we are not given any information about the accumulated depreciation balance, so option A cannot be correct. 
B) The book value of an asset is its original cost minus accumulated depreciation. We do not know the original cost of the computer system, so we cannot calculate its book value, and option B cannot be correct. 
D) The depreciable cost of an asset is its original cost minus its salvage value. We are not given any information about the salvage value of the computer system, so we cannot calculate its depreciable cost, and option D cannot be correct.

Use the Information Above to Answer the Following Question