Compute the Depreciation Expense for the Year ended Dec-31-2016 on Equipment that was purchased on Sept-10-2015 for \( \$ 120,000 \) and is expected to last 10 Years. 12,000 None of the Choices 1,000 4,000 18,000 15,000

To compute the depreciation expense, we can use the straight-line method, which distributes the cost of the asset evenly over its useful life. The annual depreciation expense is calculated as follows: \[ \text{Annual Depreciation} = \frac{\text{Cost of Equipment}}{\text{Useful Life}} = \frac{120,000}{10} = 12,000 \] Since the equipment was purchased on Sept-10-2015, we need to account for the partial year in 2015 and the full years in 2016. The remaining months in 2015 are about 3.5, leading to: \[ \text{Depreciation for 2015} = \frac{12,000}{12} \times 3.5 = 3,500 \] Then, we can compute the depreciation for 2016: \[ \text{Depreciation for 2016} = 12,000 \] Thus, for the year ended Dec-31-2016, the depreciation expense is \( 12,000 \). None of the provided choices match this precisely, as it combines parts of two years, but \( 12,000 \) would be the total depreciation for each subsequent full year after purchase.