McCloud Company purchased a machine for $15,500. The machine is expected to last four years and has a residual value of $1,500. The entry to record depreciation expense at the end of the first year using the straight-line method is:

A) Depreciation Expense-Machinery 3,500 Accumulated Depreciation-Machinery 3,500
B) Machinery 3,875 Depreciation 3,875
C) Depreciation Expense-Machinery 3,875 Machinery 3,875
D) Accumulated Depreciation-Machinery 1,500 Machinery 1,500

A