Gomez Company purchases a piece of equipment on Jan. 2, 2014, for $30,000. The equipment has an estimated life of eight years or 50,000 units of production and an estimated residual value of $3,000. Lester uses a calendar fiscal year. The entry to record the amount of depreciation for 2014, using the straight-line method, is
A) debit to Depreciation Expense, 3,750; credit to Cash, 3,750
B) debit to Depreciation Expense, 3,375; credit to Accumulated Depreciation, 3,375
C) debit to Depreciation Expense, 2,500; credit to Accumulated Depreciation, 2,500
D) debit to Accumulated Depreciation, 2,250; credit to Cash, 2,250
B
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