Three years ago a machine was purchased for $5,000. Assuming a ten-year life and straight line depreciation with a no salvage value, which of the following will appear on the income statement and balance sheet respectively after four years?
a. depreciation expense of $2,000, accumulated depreciation of $2,000.
b. depreciation expense of $500, accumulated depreciation of $2,000.
c. accumulated depreciation of $2,000, depreciation expense of $500.
d. accumulated depreciation of $500, depreciation expense of $2,000.
e. depreciation expense of $1,500, accumulated depreciation of $500.