A piece of equipment was purchased for € 10,000 on July 1st, 2019. Its useful life is expected to be 3 years and its residual value $1,000. Management uses a straight-line depreciation methodology. What is the asset book value on January 1st, 2020, and the depreciation expense for the month of December 2019?
A) 9,000 and 3,000, respectively
B) 7,000 and 250, respectively
C) 8,500 and 250, respectively
D) 10,000 and 3,000, respectively
Correct Answer:
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