ABC Corporation bought equipment on January 1, 2020. The equipment cost $540,000 and had an expected residual value of $90,000. The life of the equipment was estimated to be 6 years. Assuming straight line method is used, what would be the book value of the equipment at the end of year 2023:

A)

• $390,000.

B)

• $240,000.

C)

• $450,000.

D)

• $300,000.