On August 1 a company purchased a photocopy machine for $8,000. The estimated annual depreciation on the machine is $1,680. If the company prepares annual financial statements on December 31, the appropriate adjustment to make on December 31 of the first year would be

Question 20 options:

	increase Depreciation Expense and increase Accumulated Depreciation Equipment for $700.
	increase Depreciation Expense and increase Accumulated Depreciation Equipment for $140.
	increase Depreciation Expense and decrease Equipment for $700.
	increase Depreciation Expense and increase Accumulated Depreciation Equipment for $1,680.