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Wu's Copy Shop Bought Equipment for $16,000 on January 1

Question 67

Multiple Choice

Wu's Copy Shop bought equipment for $16,000 on January 1, 2014. Wu estimated the useful life to be 4 years with no residual value, and the straight-line method of depreciation will be used. On December 31, 2015, prior to recording depreciation for that year, Wu decides that the business will use the equipment for a total of 5 years. What is the depreciation expense for 2015?


A) $6,000
B) $2,400
C) $3,000
D) $4,500

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