Question: Canliss Mining uses the replacement method to determine depreciation on its office equipment. During 2009, its first year of operations, office equipment was purchased at

Canliss Mining uses the replacement method to determine depreciation on its office equipment. During 2009, its first year of operations, office equipment was purchased at a cost of $14,000. Useful life of the equipment averages 4 years and no salvage value is anticipated. In 2011, equipment costing $5,000 was sold for $600 and replaced with new equipment costing $6,000. Canliss would record 2011 depreciation of:

a. $3,500.00

b. $4,400.00

c. $5,400.00

d. None of the above.

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