Marks Corporation has two operating departments,Drilling and Grinding,and an office.The three categories of office expenses are allocated to the two departments using different allocation bases.The following information is available for the current period:

-The amount of depreciation that should be allocated to Grinding for the current period is:
A)$20,000.
B)$25,000.
C)$7,500.
D)$12,500.
E)$40,000.

Question

Marks Corporation has two operating departments,Drilling and Grinding,and an office.The three categories of office expenses are allocated to the two departments using different allocation bases.The following information is available for the current period:

-The amount of depreciation that should be allocated to Grinding for the current period is:

-The amount of depreciation that should be allocated to Grinding for the current period is:
A)$20,000. 
B)$25,000. 
C)$7,500. 
D)$12,500. 
E)$40,000.

Quizplus · Accepted Answer

Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life. The correct amount, $12,500, is likely derived from specific details about the asset's cost, salvage value, and useful life provided in the scenario, which are not included in the question.

Marks Corporation Has Two Operating Departments,Drilling and Grinding,and an Office