On July 31, 2015, Colorful Printers Purchased a Printer for $50,000

Multiple Choice

On July 31, 2015, Colorful Printers purchased a printer for $50,000. It expects the printer to last for four years and have a residual value of $2,000. Compute the depreciation expense on the printer for the year ended December 31, 2015, using the straight-line method.

A) $50,000
B) $5,000
C) $12,500
D) $25,000