Suppose the company purchases the following asset: Cost = $20,000 ($18,000 + $2,000 for shipping and install) • Residual value = $5,000 (estimated selling price in 5 years). Expected useful life = 5 years • What is the amount of depreciation expense in year 4? Assume Straight-line method 15 $4,000 O $2,000 $3,000 $12,000