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If you purchase a new piece of equipment of $10,000 which is expected to have a useful life of 4 years, by straight line depreciation,

If you purchase a new piece of equipment of $10,000 which is expected to have a useful life of 4 years, by straight line depreciation, the annual depreciation is ____. By GAAP _____, we defer the expense instead of booking the expense upfront.

$2,500; Matching Principle

$2,000; Matching Principle

$2,500; Revenue Recognition Principle

$2,000; Revenue Recognition Principle

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