Holman Company Owns Equipment with an Original Cost of $95,000

Multiple Choice

Holman Company owns equipment with an original cost of $95,000 and an estimated salvage value of $5,000 that is being depreciated at $15,000 per year using the straight-line depreciation method.The adjusting entry needed to record annual depreciation is:

A) Debit Depreciation Expense,$15,000;credit Equipment,$15,000.
B) Debit Equipment,$15,000;credit Accumulated Depreciation,$15,000.
C) Debit Depreciation Expense,$10,000;credit Accumulated Depreciation,$10,000.
D) Debit Depreciation Expense,$10,000;credit Equipment,$10,000.
E) Debit Depreciation Expense,$15,000;credit Accumulated Depreciation,$15,000.