Chubb Company paid cash to purchase equipment on January 1, Year 1. Select the answer that shows how the recognition of depreciation expense in Year 2 would affect assets, liabilities, equity, net income, and cash flow (+ means increase, – decrease, and NA not affected)

Multiple Choice 

• Option D
• Option C
• Option B
• Option A

Assets Liabilities Equity Net Income Cash Flow A. NA NA B. NA c. NA D. NA NA