An Agency Acquires Equipment Costing $300,000 on the First Day $\begin{array}{ll}\text { Program costs-depreciation } & 120,000 \\\text { Accumulated depreciation } && 120,000 \\\end{array}$

An agency acquires equipment costing $300,000 on the first day of its fiscal year. The equipment has a five-year estimated useful life. What proprietary journal entry should the agency make?
a.
$\begin{array}{ll}\text { Program costs-depreciation } & 120,000 \\\text { Accumulated depreciation } && 120,000 \\\end{array}$

b.
$\begin{array}{ll}\text { Depreciation expense } & 60,000 \\\quad \text { Accumulated depreciation } && 60,000 \\\end{array}$

c.
$\begin{array}{ll}\text { Expenditures-depreciation } & 60,000 \\\text { Accumulated depreciation } & & 60,000\\\end{array}$

d.
$\begin{array}{ll}\text { Program costs-deprecation } & 60,000 \\\text { Accumulated depreciation } && 60,000\end{array}$

e. None of the above