The Crane Company purchased equipment for $15650 on December 1. It is estimated that annual depreciation on the equipment will be $3130. If financial statements are to be prepared on December 31, the company should make the following adjustment: O increase Depreciation Expense, $261; increase Accumulated Depreciation, $261. O increase Equipment, $15650; increase Accumulated Depreciation, $15650. O increase Depreciation Expense, $12520; increase Accumulated Depreciation, $12520. O increase Depreciation Expense, $3130; increase Accumulated Depreciation, $3130.

The Crane Company purchased equipment for $15650 on December 1 . It is estimated that annual depreciation on the equipment will be $3130. If fonancist statements are to be prepared on December 31 , the company should make the following adjustment: increase Depreciation Expense, \$261; increase Accumulated Depreciation, \$261. increase Equipment, \$15650; increase Accumulated Depreciation, \$15650. increase Depreciation Expense, \$12520; increase:Accumulated Depreciation, $12520 increase Depreciation Expense, $3130; increase Accumulated Depreciation, $3130