Question 24

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Equipment was purchased for $150,000. Freight charges amounted to $7,000 and there was a cost of $20,000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $30,000 salvage value at the end of its 5-year useful life. Depreciation expense each year using the straight-line method will be

Select one:

a. The answer does not exist

b. $24,600.

c. $35,400

d. $29,400.

e. $24,000.