With respect to the Gift Card Liability account, which assertion (existence, completeness, valuation, rights & obligations, cut-off, or presentation and disclosure is the highest priority for this account and WHY?

Target purchased $3,544 of property and equipment in the year ending 1/29/2022. Hypothetically assume that all of this equipment was purchased on January 30, 2022 and has a useful life of ten (10) years and a salvage value of zero. After one year, how does depreciation expense effect the accounting equation?

Question 12 options:

1)	It does not affect the equation because the only relevant transaction is the cash that was paid on January 30.
2)	Assets and Equity decrease by $354.4.
3)	Property and Equipment are reduced by $354.4 and Accumulated Depreciation is increased by $354.4.
4)	Assets decrease by $354.4 and Liabilities increase by $354.4.