For each separate cose below, follow the three-step process for adjusting the Accumulated Depreciation account December 31 Step 1: Determine what the current account balance equals Step 2 Determine what the current account balance should equal Step 3. Record the December 31 adjusting entry to get from step 1 to step 2 Assume no other adjusting entries are made during the year a. Accumulated Depreciation: The Krug Company's Accumulated Depreciation account has a $20,500 balance to start the year A review of depreciation schedules reveals that $23,000 of depreciation expense must be recorded for the year Debitor Credir? Accumulated depreciation Step 1: Determine what the current account balance equals $ 20.500 Credit 20.500 23.000 Step 2: Determine what the current account balance should equal Credit Step 3: Record the December 31 adjusting entry to get from step 1 to step 2 Depreciation expense Accumulated depreciation 23.000 23.000 b. Accumulated Depreciation: The company has only one fixed asset (truck) that it purchased at the start of this year. That asset had cost $58,000, had an estimated life of five years, and is expected to have more value at the end of the five years Accumulated depreciation -Truck Step 1: Determine what the current account balance equals Step 2: Determine what the current account balance should equal Credi Step 3. Record the December 31 adjusting entry to get from step 1 to step 2 Depreciation expense Truck Accumulated depreciation-Truck c. Accumulated Depreciation: The company has only one fixed asset (equipmen that purchased at the start of this year. That asset had cost $60,000, had an estimated life of seven years, and is expected to be valued at $12,400 at the end of the seven years. Accumulated depreciation --Equipment Step 1: Determine what the current account balance equals Step 2 Determine what the current account balance should equal Step 3. Record the December 31 adjusting entry to get from step 1 to step 2