Howard purchased equipment for his mowing business at a cost of $12,000 cash on January 1st, 2021. The asset was recorded as equipment on Howard's balance sheet. He expects to use the equipment over a four-year period. Assuming no adjusting entries have been recorded during the year, the resulting transaction on December 31st, 2021 (one year after the purchase) is: To record $4,000 of depreciation expense