Final answer:
The correct formula in cell E2 after copying the formula =$A4-B$5 from cell D4 is: =$A2-C$5.
Step-by-step explanation:
When you copy a cell with a formula in Excel, the references in the formula will change according to the type of cell reference it is - relative or absolute. In the formula =$A4-B$5, $A represents an absolute column reference which doesn't change when the formula is copied, and 4 is a relative row reference, which does change. The $5 part is an absolute reference to row 5, which also will not change when copied. When this formula is copied from cell D4 to cell E2, we keep the A column reference, but the row number changes relative to the new location (from 4 down to 2). And the B part changes column reference from B to C since it was a relative reference. Therefore, the correct formula in cell E2 is: =$A2-C$5.