Question: Which of the following best describes how to record the following transaction: December 31st: Recording $12,000 of depreciation expense relating to a machinery purchase. A. Debit Depreciation Expense & Credit Accumulated Depreciation - Machinery since the expense is incurred during the year and the book value of the machinery has decreased. B. Debit Depreciation Expense & Credit Fixed Asset - Machinery since the expense is incurred during the year and the book value of the machinery has decreased. C. Debit Accumulated Depreciation & Credit Depreciation Expense since the expense is incurred during the year and the book value of the machinery has decreased. D. Debit Fixed Asset - Machinery & Credit Depreciation Expense since the expense is incurred during the year and the book value of the machinery has decreased. E. None of the above best describe the transaction.