Clementine Co. computes depreciation to the nearest whole month and uses the straight-line method. On May 2, 2015, the company purchased an asset for $18,000 with a four-year life and a $3,600 residual value. On October 6, Karen also sold an asset with a cost of $34,500 that had been purchased in 2015. The sold asset had been estimated to have a five-year life and no residual value when it was purchased. The depreciation expense on these two assets for 2015 totals

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The depreciation expense for the asset purchased on May 2, 2015 is $3,600 per year ($18,000 - $3,600 / 4 years). The depreciation expense for the first five months of 2015 is $1,500 ($3,600 x 5/12). The depreciation expense for the asset sold on October 6, 2015 is $6,750 per year ($34,500 / 5 years). The depreciation expense for the first ten months of 2015 is $5,625 ($6,750 x 10/12). The total depreciation expense for 2015 is $7,125 ($1,500 + $5,625).