Jackson Co

Multiple Choice

Jackson Co. purchases equipment with a cost of $26,000 and a trade-in value of $2,000. Jackson Co. estimates that the equipment will have a useful life of 5 years. Assuming Jackson Co. records depreciation for six months using the straight-line method, the adjustment would be recorded in the work sheet as a:

A) a debit to equipment and credit to depreciation expense, $2,400.
B) a debit to accumulated depreciation and a credit to equipment, $2,400.
C) a debit to depreciation expense and a credit to equipment, $2,400.
D) a debit to depreciation expense and a credit to accumulated depreciation, $2,400.