Disc Company purchased equipment at the beginning of July 2017 for $400 000. The company decided to depreciate the equipment over a 5-year period using the straight-line method. The company estimated the equipment's residual value at $80 000. The journal entry to record depreciation expense for the financial year ended 30 June 2018 is a debit to:

Depreciation expense and a credit to accumulated depreciation for $64 000

Depreciation expense and a credit to accumulated depreciation for $50 000

Accumulated depreciation and a credit to equipment for $64 000

Depreciation expense and a credit to accumulated depreciation for $55 000