On January 1, 2013, Owens Company Spent $850 on a Plant

Multiple Choice

On January 1, 2013, Owens Company spent $850 on a plant asset to improve its quality. The asset had been purchased on January 1, 2010 for $4,200 and had an estimated salvage value of $600 and a useful life of five years. Owens uses the straight-line depreciation method. Which of the following correctly shows the effects of the 2013 expenditure on the financial statements?

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