On January 1st, Treehouse purchased the furniture for $30,000. The asset has a useful life of 5 years. Assume that at the end of its useful life Treehouse will be able to sell it for $5,000 to a used furniture distributor. What is the journal entry at the end of the first year?

a.Debit Furniture for $30,000 and credit Cash for $30,000

b.Debit Depreciation Expense for $6,0000 and credit Accumulated Depreciation for $6,000

c.Debit Depreciation Expense for $5,000 and credit Accumulated Depreciation for $5,000.

d.Debit Furniture for $25,000 and credit Cash for $25,000