On July 9, 2015, Marcus Company purchased an asset for $18,000. Marcus estimated a four-year life and no salvage value. Marcus uses sum-of-the-years'-digits depreciation to the nearest whole month. Depreciation expense for 2018 will be

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The sum-of-the-years'-digits method involves adding the digits of the years in the asset's life (4+3+2+1=10). For 2018, the third year, the fraction is 2/10. Depreciation for 2018 is ($18,000 * 2/10) = $3,600. However, since the asset was purchased in July, only 6 months of depreciation should be calculated for the first year, affecting subsequent years. Adjusting for this, the total sum of digits for a 3.5-year span (considering half for the first year) would be recalculated, and the depreciation for 2018 specifically adjusted, leading to the correct calculation for a half-year effect in the first year, which is not directly shown in the options but affects the understanding of the sum-of-the-years'-digits method's application. Given the options, the closest to the correct calculation considering a full year's depreciation for 2018 without adjusting for the purchase partway through the year would be $2,700, indicating a misunderstanding in the initial explanation. The correct application involves calculating the depreciation expense for each year based on the asset's useful life and the sum-of-the-years'-digits method, but the provided options do not directly account for the mid-year purchase adjustment.

On July 9, 2015, Marcus Company Purchased an Asset for $18,000