Texts: Company A has a fixed asset with an original cost of $300,000, a residual value of $25,000, and a useful life of 10 years. The company also has land with an original cost of $1,000,000. Under the straight-line method, the journal entry to record the annual depreciation expense is:
A. Depreciation Expense $27,500 Accumulated Depreciation $27,500
B. Depreciation Expense $30,000 Fixed Asset $30,000
C. Depreciation Expense $26,000 Accumulated Depreciation $26,000
D. Depreciation Expense $5,000 Accumulated Depreciation $5,000