Terrence Manufacturing Pays $5,000 to Replace the Manual Control System

Multiple Choice

Terrence Manufacturing pays $5,000 to replace the manual control system on one of its machines with an automated system.The machine is expected to be more productive as a result.How would the company record this transaction?

A) Debit Machinery for $5,000 and credit Cash for $5,000.
B) Debit Repairs Expense for $5,000 and credit Cash for $5,000.
C) Debit Betterment Expense for $5,000 and credit Cash for $5,000.
D) Debit Extraordinary Repair Expense for $5,000 and credit Cash for $5,000.
E) Debit Depreciation Expense for $5,000 and credit Cash for $5,000.