Newco Publishing Company Purchased Equipment at the Beginning of 2014

Newco Publishing Company purchased equipment at the beginning of 2014 for $200,000.The company decided to depreciate the equipment over an 8-year period using the straight-line method.The company estimated the equipment's residual value at $20,000.The journal entry to record depreciation expense for 2014 will

A) increase Depreciation Expense and increase Accumulated Depreciation for $25,000.
B) increase Accumulated Depreciation and decrease Equipment for $25,000.
C) increase Depreciation Expense and decrease Equipment for $22,500.
D) increase Depreciation Expense and increase Accumulated Depreciation for $22,500.