On January 1,Year 1,Parker Company Purchased an Asset Costing $20,000

Multiple Choice

On January 1,Year 1,Parker Company purchased an asset costing $20,000.The asset had an expected five-year life and a $2,000 salvage value.The company uses the straight-line method.What are the amounts of depreciation expense and accumulated depreciation,respectively,that will be reported in the Year 2 financial statements?

A) $3,600 and $3,600
B) $3,600 and $7,200
C) $4,000 and $12,800
D) $4,000 and $7,200