Presented below is the trial balance for ABC, Inc. as of December 31, 2008, before adjusting entries:

ABC , INC.

Trial Balance

December 31, 2008

	DR		CR
Cash	$28,400
Accounts Receivable	12,500
Prepaid Insurance	7,200
Equipment	25,000
Accumulated Depreciation Equipment			$ 800
Unearned Revenue			6,000
Notes Payable			7,950
Retained Earnings			5,000
Common Stock			29,000
Fee Revenue			39,000
Salaries Expense	13,200
Supplies Expense	950
Interest Expense	500
	$ 87,750		$ 87,750

31. The Equipment was purchased on September 1, 2007. It has a useful life of ten years and an estimated salvage value of $1,000. ABC uses the straight-line method of depreciation. The adjusting entry at December 31, 2008 would include a:

a. credit to Accumulated Depreciation Equipment for $800.

b. credit to Accumulated Depreciation Equipment for $2,400.

c. debit to Depreciation Expense Equipment for $800.

d. credit to Equipment for $2,400.

e. none of the above

32. Refer to the previous question. The adjusted balance in Accumulated Depreciation--Equipment on December 31, 2008, after the adjusting entry is:

33. Refer to question #31. At what amount will the Equipment be reported on the financial statements for the year ended December 31, 2008?