Ivanhoe Enterprises Acquired a Piece of Equipment on January 3,2010

Multiple Choice

Ivanhoe Enterprises acquired a piece of equipment on January 3,2010.The total cost of the equipment was $35,000.Ivanhoe estimated that the equipment would be used for 8 years before being sold for an estimated $7,000.Assuming the use of straight-line depreciation,the total depreciation expense for the year ended December 31,2010 was:

A) $3,500
B) $4,000
C) $4,375
D) $5,250