A business purchased equipment for

$ 120 comma 000

on January 1, 2019. The equipment will be depreciated over the five years of its estimated useful life using the

straightminus

line

depreciation method. The business records depreciation once a year on December 31. Which of the following is the adjusting entry required to record depreciation on the equipment for the year 2019? (Assume the residual value of the acquired equipment to be zero.)

A.

Debit

$ 120 comma 000

to Equipment, and credit

$ 120 comma 000

to Cash.

B.

Debit

$ 24 comma 000

to Depreciation

Expenselong dash

Equipment,

and credit

$ 24 comma 000

to Accumulated

Depreciationlong dash

Equipment.

C.

Debit

$ 120 comma 000

to Depreciation

Expenselong dash

Equipment,

and credit

$ 120 comma 000

to Accumulated

Depreciationlong dash

Equipment.

D.

Debit

$ 24 comma 000

to Depreciation Expense, and credit

$ 24 comma 000

to Equipment.