A company records $10,000 depreciation expense. Which of the following describes the effect on the balance sheet?

A. Assets increase $10,000 and Equity increases $10,000.

B. Assets increase $10,000 and Liabilities increase $10,000.

C. Liabilities increase $10,000 and Equity decreases $10,000.

D. Assets decrease $10,000 and Equity decreases $10,000.

E. Assets decrease $10,000 and Liabilities decrease $10,000.