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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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