Question 8 On January 1st of year 1, Desmet Company purchased office equipment that cost $15,000 cash. The equipment was delivered under terms FOB shipping point, and transportation cost was $1,000. The equipment had a five year useful life and a $1,200 expected salvage value. Using straight line depreciation, determine the amount of depreciation expense and the amount of accumulated depreciation that would appear on the financial statements at the end of the second year.

$2,960/$5,920

$2,960/$2,960

$2,608/$5,216

$2,608/$2,608

On January 1 st of year 1 , Desmet Company purchased office equipment that cost $15,000 cash. The equipment was delivered under terms FOB shipping point, and transportation cost was $1,000. The equipment had a five year useful life and a $1,200 expected salvage value. Using straight line depreciation, determine the amount of depreciation expense and the amount of accumulated depreciation that would appear on the financial statements at the end of the second year. $2,960/$5,920 $2,960/$2,960 $2,608/$5,216 $2,608/$2,608