O'Hare Company,is a manufacturing firm that uses a job-order cost system to determine the costs of its products.During 2014the current accounting period,O'Hare recognized depreciation of $600 on manufacturing equipment.Which of the following describes the effect of this event on the accounting equation?

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When a company records depreciation on manufacturing equipment,the contra asset account Accumulated Depreciation increases,thus decreasing total assets,and the temporary asset account Manufacturing Overhead increases,thus increasing total assets.This is an asset exchange transaction and,as such,has no impact on total assets or total equity.
The contra asset account,Accumulated Depreciation increases,thus decreasing assets
Changed wording.JMF
The contra asset account,Accumulated Depreciation increases,thus decreasing assets
Changed wording.JMF

O'Hare Company,is a Manufacturing Firm That Uses a Job-Order Cost