In $2013,$ Big Corp purchased a piece of machinery for its factory at a cost of $$50,000.$ The company

decided to use the $100\%$ bonus depreciation method. However, the IRS Year $1$ limit for machinery is

$$40,000.$ How should Big Corp record the purchase and the depreciation expense for this machinery?

Select the single best answer:

A$.$ debit Cash $$50,000$; credit Machinery $$40,000$; credit Depreciation Expense $$10,000$

B$.$ debit Depreciation Expense $$50,000$; credit Accumulated Depreciation $$50,000$

C$.$ credit Cash $$50,000$; debit Machinery $$50,000$; debit Depreciation Expense $$40,000$; credit Accumulated

Depreciation $$40,000$

D$.$ debit Machinery $$50,000$; credit Cash $$50,000$; debit Depreciation Expense $$50,000$; credit Accumulated

Depreciation $$50,000$

E$.$ credit Cash $$50,000$; debit Depreciation Expense $$50,000$