A new accountant working for Spirit Walker Company records $900 Depreciation Expense on store equipment as follows: Depreciation Expense 900 Cash 900 The effect of this entry is to Entry field with incorrect answer understate total assets on the balance sheet as of December 31. understate the book value of the depreciable assets as of December 31. overstate the book value of the depreciable assets at December 31. adjust the accounts to their proper amounts on December 31.

In year 1, the bennetts' 25-year-old daughter, jane, is a full-time student at an out-of-state university but she plans to return home after the school year ends. in previous years, jane has never worked and her parents have always been able to claim her as a dependent. in year 1, a kind neighbor offers to pay for all of jane's educational and living expenses. which of the following statements is most accurate regarding whether jane's parents would be allowed to claim an exemption for jane in year 1 assuming the neighbor pays for all of jane's support? a.no, jane must include her neighbor's gift as income and thus fails the gross income test for a qualifying relative.b.yes, because she is a full-time student and does not provide more than half of her own support, jane is considered her parent's qualifying child.c.no, jane is too old to be considered a qualifying child and fails the support test of a qualifying relative.d.yes, because she is a student, her absence is considered as "temporary." consequently she meets the residence test and is a considered a qualifying child of the bennetts.