On January 1st, Ferris Company purchased $10,000,000 of plant and equipment that has an estimated useful life of 10 years. Management believes, at the end of 10 years, this plant and equipment can be sold at a salvage value of $1,000,000 (which is 10% of its original cost). Using straight-line depreciation, what would be the "book value" of this asset at Dec 31st of year four? O $10 million O $1.0 million O $12.6 million O $6.4 million O $3.6 million

On January 1st, Ferris Company purchased $10,000,000 of plant and equipment that has an estimated useful life of 10 years. Management believes, at the end of 10 years, this plant and equipment can be sold at a salvage value of $1,000,000 (which is 10% of its original cost). Using straight-line depreciation, what would be the "book value of this asset at Dec 31st of year four? O $10 million O $1.0 million $12.6 million O $6.4 million O $3.6 million