Aggie Company purchased equipment on January 1, 2021. The following information is available concerning the purchase: Invoice price Shipping charges Purchase terms $12,000 $950 3/10, net 30 Installation costs $300 Trial run material $100 Trial run labor $200 January 8, 2021 Payment date Insurance for first year $400 The equipment is being depreciated using the straight-line method over a 10-year life with a salvage value of $1,000. Depreciation expense for 2021 would be what amount? A. $1,219 B. $1,259 C. $1,319 D. $1,124 E. $1,289 At year-end a company forgot to record depreciation expense on its fixed assets. How does this error affect the financial statements? Liabilities No Effect Overstated Overstated Assets A. Understated B. Understated C. Overstated D. Overstated E. No Effect No Effect ARCDE No Effect Stockholders' Equity Understated Overstated No Effect Overstated No Effect