Muscat Company purchased an equipment for OMR 5,000 on December 1. It is estimated that annual depreciation on the equipment will be OMR 960. If financial statements are to be prepared on December 31, the company should make the following adjusting entry:

Select one:

a. None of the answers are correct

b. Depreciation Expense...................................................... 960

Accumulated Depreciation Equipment ................ 960

c. No entry is required.

d.

Depreciation Expense...................................................... 80

Accumulated Depreciation Equipment ................ 80

e. Equipment........................................................................ 5,000

Accumulated Depreciation Equipment ................ 5,000

f. Depreciation Expense,..................................................... 4,040

Accumulated Depreciation Equipment ................ 4,040

Explain the answers