Canliss Mining Uses the Retirement Method to Determine Depreciation on Its

Multiple Choice

Canliss Mining uses the retirement method to determine depreciation on its office equipment. During 2011, its first year of operations, office equipment was purchased at a cost of $14,000. Useful life of the equipment averages four years and no salvage value is anticipated. In 2013, equipment costing $5,000 was sold for $600 and replaced with new equipment costing $6,000. Canliss would record 2013 depreciation of:

A) $3,500.
B) $4,400.
C) $5,400.
D) None of the above is correct.