Lomax Enterprises purchased a depreciable asset for $22,000 on March 1, Year 1. The asset will be depreciated using the straight-line method over its four-year useful life. Assuming the assets salvage value is $2,000, Lomax Enterprises should recognize depreciation expense in Year 2 in the amount of $5,000. The transaction to record deprecation would affect:

		Balance sheet only
		Income statement only
		Both the balance sheet and income statement
		There is no effect on any statement since cash is not part of the transaction