Asked by Maria Mendez on May 21, 2024

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The amount of depreciation that should be allocated to Grinding for the current period is:

A) $20,000.
B) $25,000.
C) $7,500.
D) $12,500.
E) $40,000.

Operating Departments

Divisions or units within an organization directly involved in its core operational activities, responsible for creating products or services.

Allocation Bases

Allocation bases are criteria or standards used to distribute costs among different departments, activities, or products in a company.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the loss in value due to wear and tear, deterioration, or obsolescence.

  • Apply expense allocation for office and departmental expenses.
  • Calculate allocated expenses based on given allocation bases such as floor space, employee count, or another specific factor.
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JS
Jaspreet SidhuMay 23, 2024
Final Answer :
D
Explanation :
Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life. The correct amount, $12,500, is likely derived from specific details about the asset's cost, salvage value, and useful life provided in the scenario, which are not included in the question.