Three years ago piece of equipment was purchased

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Reference no: EM131831104

Three years ago a piece of equipment was purchased for $10,000. Assuming an eight-year life and straight-line depreciation, financial statements for the third year will show:

A. depreciation expense of $1,250 on the income statement, and accumulated depreciation of $3,000 on the balance sheet.

B. depreciation expense of $1,250 on the income statement, and accumulated depreciation of $3,750 on the balance sheet.

C. depreciation expense of $1,250 on the income statement, and accumulated depreciation of $1,250 on the balance sheet.

D. depreciation expense of $3,000 on the income statement, and accumulated depreciation of $3,000 on the balance sheet.

Reference no: EM131831104

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