Consider Each of the Items Below

Multiple Choice

Consider each of the items below. Place the proper letter in the blank space provided to indicate the nature of the account or accounts to be debited when recording each transaction using the preferred accounting treatment. Prepayments should be recorded in balance sheet accounts. Disregard income tax considerations unless instructed otherwise.
-Jantzen Company traded its old machine with a net book value of $3,000 plus cash of $7,000 for a new one which had a fair market value of $9,000.

A) asset(s) only
B) accumulated amortization, depletion, or depreciation only
C) expense only
D) asset(s) and expense
E) some other account or combination of accounts