Towing information: Cost of asset, $250,000 Accumulated depreciation, beginning of year, $85,000 Current year depreciation, $40,000 A. Make the December 31 adjusting journal entry for depreciation. If an amount box does not require an entry, leave it blank. December 31 Depreciation Expense 40.000 Accumulated Depreciation 40,000 Feedback A. This entry involves a contra accounti B. Determine the net book value (NBV) of the asset on December 31. 290,000 B. Remember that net book value is only equal to cost when the asset is purchased