Ignoring any related tax implications, what is the effect on a company's balance sheet when depreciation expense is recognized?
a) This transaction affects only the income statement, so no change on the balance sheet will occur.
b) Total assets and total stockholder's equity will decrease by the same amount.
c) There will be no change in the total assets, liabilities and stockholders equity accounts.
d) Total liabilities will increase and total stockholder's equity will decrease by the same amount.