A new accountant working for Sheffield Company records $$960$ Depreciation Expense on store equipment as follows:

Dr$.$ Depreciation Expense $960$

Cr$.$ Cash

The effect of this entry is to

understate total assets on the balance sheet as of December $31.$

understate the book value of the depreciable assets as of December $31.$

overstate the book value of the depreciable assets at December $31.$

adjust the accounts to their proper amounts on December $31.$