Bombay Inc

Multiple Choice

Bombay Inc.bought new computers on January 1 for $18,000 to improve the quality of their animation.The computers have a useful life of 8 years but Bombay Inc.thinks that continuing technological developments will likely mean they will replace the computers after 4 years,at which time they will be worth $2,000.If they use straight-line depreciation,the depreciation expense for the first year will be

A) $2,000.
B) $2,250.
C) $4,000.
D) $4,500.