A company records \$500 of depreciation for the period. How does this affect the adjusted trial balance?

• A. Decrease Depreciation Expense by \$500; Increase Accumulated Depreciation by \$500.
• B. Increase Depreciation Expense by \$500; Decrease Accumulated Depreciation by \$500.
• C. Increase Depreciation Expense by \$500; Increase Accumulated Depreciation by \$500.
• D. Decrease Depreciation Expense by \$500; Decrease Accumulated Depreciation by \$500.

Answer: (C)