Multiple Choice Question 91

Equipment was purchased for $156500. Freight charges amounted to $3500 and there was a cost of $10000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $30000 salvage value at the end of its 5-year useful life. Depreciation Expense each year using the straight-line method will be

$28000.

$25300.

$34000.

$28600.