To properly close the depreciation expense account, the correct entry would involve a debit to the income summary account and a credit to the depreciation expense account. This action resets the depreciation expense account to zero for the new accounting period and transfers the total depreciation expense for the period to the income summary, which will ultimately contribute to determining the net income or loss.
Closing entries are essential at the end of an accounting period, as they help in preparing the accounts for the next period. By debiting the income summary and crediting the depreciation expense account, you ensure that the evaluated expenses are accounted for correctly in the financial results.