On January 1, Year 1, Marino Moving Company paid $64,000 cas…
Questions
On Jаnuаry 1, Yeаr 1, Marinо Mоving Cоmpany paid $64,000 cash to purchase a truck. The truck was expected to have a four year useful life and a $4,000 salvage value. If Marino uses the straight-line method, which of the following shows how the adjusting entry to recognize depreciation expense at the end of Year 3 will affect the Company’s financial statements? Balance Sheet Income Statement Statement of Cash Flows Assets = Liabilities + Stockholders’ Equity Cash + Book Value of Truck = Accounts Payable + Common Stock + Retained Earnings Revenue − Expense = Net Income A. + (45,000) = + + (45,000) − 45,000 = (45,000) B. + (45,000) = + + (45,000) − 45,000 = (45,000) C. + (15,000) = + + 15,000 − 15,000 = (15,000) (15,000) OA D. + (15,000) = + + (15,000) − 15,000 = (15,000)