On January 1, Year 2 Boothe Company paid $12,000 cash to extend the useful life of a machine. Which of the following general journal entries would be required to recognize this expenditure?
A.
| Depreciation expense | 12,000 | |
| Cash | 12,000 |
B.
| Machine | 12,000 | |
| Cash | 12,000 |
C.
| Accumulated depreciation | 12,000 | |
| Cash | 12,000 |
D.
| Retained earnings | 12,000 | |
| Cash | 12,000 |
Answer: C
Business
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