Victory Company purchases office equipment at the beginning of the year at a cost of $15,000. The machine is depreciated using the straight-line method. The machine's useful life is estimated to be 7 years with a $1,000 salvage value. The journal entry to record the first year's depreciation is:
A. Debit Accumulated Depreciation $2,143; credit Office Equipment $2,143.
B. Debit Office Equipment $2,000, credit Accumulated Depreciation $2,000.
C. Debit Depreciation Expense $2,000, credit Office Equipment $2,000.
D. Debit Depreciation Expense $2,143, credit Accumulated Depreciation $2,143.
E. Debit Depreciation Expense $2,000, credit Accumulated Depreciation $2,000.
Answer: E
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