machinery and equipment depreciation expense for general capital assets totaled 163 641548

Machinery and equipment depreciation expense for general capital assets totaled $163,000 for the reporting period. Which of the following correctly defines the recording of depreciation for general capital assets?

Debits

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Credits

a. Depreciation Expenditure . . . . . . . . . . . . . . . . . . .

163,000

Accumulated Depreciation. . . . . . . . . . . . . . . . .

163,000

b. Depreciation Expense . . . . . . . . . . . . . . . . . . . . . .

163,000

Machinery and Equipment. . . . . . . . . . . . . . . . .

163,000

c. Depreciation is allocated, and recorded at the government wide level with

a debit to the functions or programs of government and a credit to accumulated depreciation.

d. Since depreciation does not involve the use of financial resources it is not necessary for the government to record it at the fund level or government wide level.

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