XYZ Company purchases office supplies on Jan 1, Year 1. XYZ uses straight line depreciation methods.

The office equipment cost 50,000

There is a 3000 residual value and a 10 year life expectancy of the equipment

- What is depreciation expense in the first year?

- What is the balance in accumulated depreciation after a full year?

1. What is depreciation expense on the office equipment in Year 3?