1. On January 1, Year 2 Babe Company paid $12,000 cash to extend the useful life of a machine. Which of the following general journal entries would be required to recognize this expenditure?

   A.

   Accumulated depreciation	12,000
   Cash		12,000

   B.

   Depreciation expense	12,000
   Cash		12,000

   C.

   Machine	12,000
   Cash		12,000

   D.

   Retained earnings	12,000
   Cash		12,000