On January 1, 2019, a Machine with an Estimated Life

Multiple Choice

On January 1, 2019, a machine with an estimated life of 5 years and an estimated residual value of $5,000 was acquired for $40,000. On July 1, 2021, the machine was sold for $7,000 cash. The journal entry to record the sale

A) decreases stockholder's equity.
B) increases total assets.
C) decreases total expenses.
D) increases net income.