Leahy Company purchased equipment at the beginning of the year for $400,000. The company decided to depreciate the equipment using the straight-line method. Which of the following is one effect of recognizing depreciation expense during the year?

	A.	Accumulated Depreciation increases and shareholders' equity decreases.
	B.	Shareholders' equity and the Equipment account decrease.
	C.	Accumulated Depreciation increases and the Equipment account decreases.
	D.	Total expenses and the book value of the depreciated equipment increase.