Which journal entry reflects the adjusting entry needed on December 31?:

Last year, BOC purchased a building for $1,000,000. The expected life of the building is 20 years and its expected salvage value is $200,000. Now, it is December 31, the end of the fiscal year. No other entries were recorded for this building during the year.

No entry needed. The building was not purchased this year.

Dr. Depreciation Expense 50,000

Cr. Building 50,000

Dr. Depreciation Expense 50,000

Cr. Accumulated Depreciation 50,000

Dr. Depreciation Expense 40,000

Cr. Building 40,000

Dr. Depreciation Expense 40,000

Cr. Accumulated Depreciation 40,000

Yang corporation starts a foreign subsidiary on january 1 by investing 20,000 rand. yang owns all of the shares of the subsidiary’s common stock. the foreign subsidiary generates 40,000 rand of net income throughout the year and pays no dividends. the rand is the foreign subsidiary’s functional currency. currency exchange rates for 1 rand are as follows: lo 10-3 january $0.25 = 1 rand average for the 0.28 = 1 december 0.31 = 1 in preparing consolidated financial statements, what translation adjustment will yang report at the end of the current year? a. $400 positive (credit). b. $1,000 positive (credit). c. $1,400 positive (credit). d. $2,400 positive (credit). hoyle, joe ben; hoyle, joe ben. advanced accounting (page 513). mcgraw-hill higher education. kindle edition.