Ms Lollipop Opened a Candy Store in December 2013

Multiple Choice

Ms. Lollipop opened a candy store in December 2013. She rented a building for $25,000 a year and used $30,000 from her savings account, which earned an annual interest rate of 5 percent, to buy capital equipment. In December 2014, the market value of her capital equipment was $26,000. What is the economic depreciation of Lollipop's capital?

A) $3,000
B) $4,000
C) $1,000
D) $25,000