Use the following information for questions 12-15:

Assume equipment was purchased on January 1 in year 1 and that you are using the straight-line method of depreciation. (Assume year-end is December 31). Use the information below to answer the questions. Feel free to make your own table on scratch paper for any of the questions involving depreciation but be sure to destroy the paper at the end of the test.

Cost of equipment = $20,000

Salvage value = 2,000

Useful life = 4 years

Note: You don't have to fill in the table below on your screen but you can make your own table on scratch paper if it is helpful.

Year	Depreciation Exp.	Accumulated Depr.	Book Value
0
1
2
3
4

Question 6: How much is the depreciation expense each year?

	a.	$9,000
	b.	$20,000
	c.	$3,500
	d.	$4,500