J B Consulting Purchased a Machine for $6,000 on August 1

question 59

Multiple Choice

J. B. Consulting purchased a machine for $6,000 on August 1, 2019. The company expects the useful life of the machine to be 5 years and no salvage value is expected. If the company uses the straight-line method to depreciate the machine, what will be the depreciation adjustment for the year ending December 31, 2019?

• A)Debit Depreciation Expense $500 and Credit Equipment $500.
• B)Debit Depreciation Expense $400 and Credit Accumulated Depreciation $400.
• C)Debit Depreciation Expense $500 and Credit Accumulated Depreciation $500.
• D)Debit Accumulated Depreciation $100 and Credit Depreciation Expense $100.