Target purchased $$3,544$ of property and equipment in the year ending January $29,2022.$ Hypothetically assume that all of this equipment was purchased on January $29,2022$ and has a useful life of ten $(10)$ years and a salvage value of zero.

After one year how does depreciation expense for the equipment purchased in $2022$ effect the accounting equation for the year ended January $28,2023?$

Question $15$ options:

$1)$

It does not affect the equation because the only relevant transaction is the cash that was paid on January $30.$

$2)$

Assets and Equity decrease by $$354\mathrm{.}4.$

$3)$

Property and Equipment are reduced by $$354\mathrm{.}4$ and Accumulated Depreciation is increased by $$354\mathrm{.}4.$

$4)$

Assets decrease by $$354\mathrm{.}4$ and Liabilities increase by $$354\mathrm{.}4.$