Newco Publishing Company purchased equipment at the beginning of 2016 for $200,000 . The company decided to depreciate the equipment over an 8-year period using the straight-line method. The company estimated the equipment's residual value at $20,000 . The journal entry to record depreciation expense for 2016 will
a. increase Depreciation Expense and increase Accumulated Depreciation for $25,000.
b. increase Accumulated Depreciation and decrease Equipment for $25,000.
c. increase Depreciation Expense and decrease Equipment for $22,500.
d. increase Depreciation Expense and increase Accumulated Depreciation for $22,500.
d
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