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CMC records depreciation and amortization expense annually as one compound adjus

ID: 2336838 • Letter: C

Question

CMC records depreciation and amortization expense annually as one compound adjusting journal entry. They do not use an accumulated amortization account. Annual depreciation rates are 7% for Buildings/Equipment/Furniture, no salvage. (Round to the nearest whole dollar.) Annual Amortization rates are 10% of original cost, straight-line method, no salvage. The patent was acquired on October 1, 2015. The last time depreciation & amortization were recorded was December 31, 2016.

Building =

Equipment and furniture=

$876,418
(un-adjusted balance 12/31/2017)

Explanation / Answer

To record Depreciation for Building,Equipment & Furniture for 2017

Notes:

Debit Credit Depreciation and Amortization $ 84658 Accumulated Depreciation $ 84658