A Company Purchased Factory Equipment on May 1, 2015 for $30,000.It

Multiple Choice

A company purchased factory equipment on May 1, 2015 for $30,000.It is estimated that the equipment will have a $4,200 residual value at the end of its 8-year useful life.Using straight-line depreciation, the depreciation expense for the years ended December 31, 2015 and 2016 is

A) $2,500 in 2015 and $3,750 in 2016.
B) $3,225 in 2015 and $3,225 in 2016.
C) $2,150 in 2015 and $3,225 in 2016.
D) None of the above.