Peavey Enterprises purchased a depreciable asset for $22,000 on April 1, Year 1. The asset will be depreciated using the straight-line method over its four-year useful life. Assuming the asset's salvage value is $2,000, Peavey Enterprises should recognize depreciation expense in Year 2 in the amount of:
A) $10,000
B) $5,000
C) $5,500
D) $20,000
E) $9,250
B) $5,000
Depreciation Expense = (Cost - Salvage Value)/Estimated Useful Life
Depreciation Expense = ($22,000 - $2,000)/4 = $5,000
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