On January 1, Year 1, Parker Company purchased an asset costing $20,000. The asset had an expected five-year life and a $2,000 salvage value. The company uses the straight-line method. What are the amounts of depreciation expense and accumulated depreciation, respectively, that will be reported in the Year 2 financial statements?

A. $4,000 and $7,200
B. $3,600 and $7,200
C. $4,000 and $12,800
D. $3,600 and $3,600


Answer: B

Business

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