Equipment with a Cost of $160,000, an Estimated Residual Value

question 125

Multiple Choice

Equipment with a cost of $160,000, an estimated residual value of $10,000, and an estimated life of 4 years, was purchased on April 1, 2015.If the straight-line method is used, the depreciation expense for calendar 2015 is

• A)$40,000.
• B)$37,500.
• C)$30,000.
• D)$28,125.