Refer to the Information Above

Multiple Choice

Refer to the information above. Assume that in its financial statements, Victor uses straight-line depreciation and rounds depreciation for fractional years to the nearest whole month. Depreciation recognized on this equipment in 2009 and 2010 will be:

A) $23,333 in 2009 and $35,000 in 2010.
B) $40,000 in 2009 and $30,000 in 2010.
C) $20,000 in 2009 and $35,000 in 2010.
D) $26,250 in 2009 and $35,000 in 2010.