Final answer:
The calculation of Bambi's depreciation expense for the gym in 2021 requires additional details such as the construction cost, the gym's useful life, and the depreciation method. Without this information, the correct depreciation expense cannot be determined from the given options.
Step-by-step explanation:
To calculate Bambi's depreciation expense for the gym in 2021, we would need additional information such as the cost of the gym's construction, the expected useful life of the gym, and the chosen method of depreciation. Depreciation is an accounting method that allocates the cost of a tangible asset over its useful life.
For example, if Bambi's gym were built for $600,000 and is expected to be used for 30 years with no salvage value, using a straight-line depreciation method, the annual depreciation would be $20,000 ($600,000 cost divided by 30 years).
Without the necessary details, it is not possible to provide the correct answer among the options given (A. $120,000; B. $600,000; C. $160,000; D. $40,000; E. $0).
Therefore, to answer the student's question about Bambi's depreciation expense for the gym in 2021, the additional information is required.