Disc Company Purchased Equipment at the Beginning of 2010 for $200,000

Multiple Choice

Disc Company purchased equipment at the beginning of 2010 for $200,000. The company decided to depreciate the equipment over an 5-year period using the straight-line method. The company estimated the equipment's salvage value at $20,000. The journal entry to record depreciation expense for 2011 is a debit to:

A) depreciation expense and a credit to accumulated depreciation for $40,000.
B) accumulated depreciation and a credit to equipment for $40,000.
C) depreciation expense and a credit to equipment for $36,000.
D) depreciation expense and a credit to accumulated depreciation for $36,000.