New machinery and equipment was purchased during the year for a total cost of $680,000. Depreciation expense for the year on machinery and equipment was $220,000. No machinery or equipment was sold or otherwise disposed of during the year. During the year, the net book value of machinery and equipment:

Multiple Choice

A) increased by $680,000.

B) decreased by $460,000.

C) increased by $460,000.

D) decreased by $220,000.