on Jan. $1,2023$ equipment was purchased at price of $$17,000$ and paid following expenditures related to equipment:

Freight in cost $$2,000$

Insurance during transit $$1,500$

Installation and testing $$500.$

Additional Information

Estimated Residual Value $$1,000$

Estimated useful life $5$ years.

Using Straight Line Method, Compute the book value of equipment at end of first year $($ending $2023)$

$$: