A Business Acquires Equipment for $140,000 on January 1,2011

A business acquires equipment for $140,000 on January 1,2011.The equipment depreciation will be $20,000 each year for the seven years of the asset's expected life.The business records depreciation once a year on December 31.Which of the following is the adjusting entry required on December 31,2011?
A) A debit $140,000 to Equipment and a credit $140,000 to Cash.
B) A debit $140,000 to Depreciation expense and a credit $140,000 to Accumulated depreciation.
C) A debit $20,000 to Depreciation expense and a credit $20,000 to Accumulated depreciation.
D) A debit $20,000 to Depreciation expense and a credit $20,000 to Equipment.