A company purchased a building three years ago for $150,000 and is using straight-line depreciation...
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Accounting
A company purchased a building three years ago for $150,000 and is using straight-line depreciation to depreciate it over 20 years. The salvage value of the building is $50,000. Prepare the adjusting entry to record the depreciation expense for the current year.
DEBIT: Accumulated Depreciation for $5,000; CREDIT: Depreciation Expense for $5,000
DEBIT: Accumulated Depreciation for $7,500; CREDIT: Depreciation Expense for $7,500
DEBIT: Depreciation Expense for $5,000; CREDIT: Accumulated Depreciation for $5,000
DEBIT: Depreciation Expense for $7,500; CREDIT: Accumulated Depreciation for $7,500
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