Equipment with a Residual Value of $50,000 at the End

Multiple Choice

Equipment with a residual value of $50,000 at the end of 10 years was acquired at the beginning of 2019 for $500,000. Assuming the use of the straight-line depreciation method, the journal entry to record depreciation expense for 2021 will have a debit to

A) Depreciation Expense and a credit to Accumulated Depreciation for $50,000.
B) Accumulated Depreciation and a credit to Equipment for $50,000.
C) Depreciation Expense and a credit to Equipment for $45,000.
D) Depreciation Expense and a credit to Accumulated Depreciation for $45,000.