On 2 April 2013, Victor, Inc

Multiple Choice

On 2 April 2013, Victor, Inc. acquired a new piece of filtering equipment. The cost of the equipment was $160,000 with a residual value of $20,000 at the end of its estimated useful lifetime of 4 years.
-Refer to the above information. 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 2013 and 2014 will be:

A) $23,333 in 2013 and $35,000 in 2014.
B) $40,000 in 2013 and $30,000 in 2014.
C) $20,000 in 2013 and $35,000 in 2014
D) $26,250 in 2013 and $35,000 in 2014.