On January 1, Year 1, Marino Moving Company Paid $64,000

Multiple Choice

On January 1, Year 1, Marino Moving Company paid $64,000 cash to purchase a truck. The truck was expected to have a four year useful life and a $4,000 salvage value. If Marino uses the straight-line method, which of the following shows how the adjusting entry to recognize depreciation expense at the end of Year 3 will affect the Company's financial statements?

A) Option A
B) Option B
C) Option C
D) Option D