Ariel Tax Planning Service has the following plant assets: Communications equipment: Cost, with useful life of 8 years; Furniture: Cost, with useful life of 12 years; and Computer: Cost, with useful life of 4 years. Assume the residual value of all the assets is zero and the straightline method is used. Ariel's monthly depreciation journal entry will include a . a. credit to Accumulated Depreciation of $481
b. credit to Depreciation Expense of $5,772
c. debit to Accumulated Depreciation of $481
d. debit to Depreciation Expense of $5,772

a. credit to Accumulated Depreciation of $481

Explanation:

Find the monthly depreciation on all the assets;

Communications Equipment

= 9,600 / (8 years * 12 months)

= 9,600/96

= $100

Furniture

= 17,424 / (12 * 12)

= 17,424/144

= $121

Computer

= 12,480 / (4 * 12)

= 12,480/48

= $260

Add that up;

= 260 + 121 + 100

= $481

This figure will be debited to the depreciation expense account every month and credited to the Accumulated depreciation account to account for the reduction in Asset value.

answer; i do believe that the correct answer is (d) referrals from

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation: