On January 1, 2014, Book store company purchases equipment costing $4,000 with an estimated four year useful life. The December 31, 2014 adjusting entry is recorded and as a result

a. Depreciation Expense of $4,000 will be reported on the income statement

b. $1,000 will be reported as the balance in the equipment account on the 12/31/2001 Balance Sheet.

c. the equipment account is decreased by $1,000

d. the retained earnings account is increased by $1,000