The village of Wisteria Lane purchased 10 new police cruisers on January 1 at a total cost of 240,000 .
An additional 60,000 is being spent to paint the village's name and logo and vehicle number on the vehicles and add necessary lighting and other equipment. The cruisers will have an anticipated useful life of six years. As of the end of the first fiscal year (December 31), the depreciation expense in the government-wide statement of activities should be
a. 0
b. 40,000
c. 50,000
d. 60,000
Question 2
A debit to Accounts Payable for a return of goods on account will be posted to the controlling account but not to the individual creditor's account.
a. True
b. False
Indicate whether the statement is true or false
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