Canliss Mining uses the retirement method to determine depreciation on its office equipment. During 2019, its first year of operations, office equipment was purchased at a cost of $13,000. Useful life of the equipment averages four years and no salvage value is anticipated. In 2021, equipment costing $5,400 was sold for $680 and replaced with new equipment costing $7,900. Canliss would record 2021 depreciation of:

Multiple Choice

• $4,720.

• None of these answer choices are correct.

• $4,760.

• $4,680.