Lester Company purchases a piece of equipment on Jan. 2, 2010, for $30,000 . The equipment has an estimated life of eight years or 50,000 units of production and an estimated residual value of $3,000 . Lester uses a calendar fiscal year. The entry to record the amount of depreciation for 2010, using the straight-line method, is:
a. Depreciation Expense– Equipment 3,750
Cash 3,750
b. Depreciation Expense — Equipment 3,375
Accumulated Depreciation– Equipment 3,375
c. Depreciation Expense — Equipment 2,500
Accumulated Depreciation– Equipment 2,500
d. Accumulated Depreciation - Equipment 2,250
Cash 2,250
B
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