A company records $10,000 depreciation expense. Which of the
following describes the effect on the balance sheet?
A. Assets increase $10,000 and Equity increases $10,000.
B. Assets increase $10,000 and Liabilities increase $10,000.
C. Liabilities increase $10,000 and Equity decreases
$10,000.
D. Assets decrease $10,000 and Equity decreases $10,000.
E. Assets decrease $10,000 and Liabilities decrease $10,000.