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The Fine Dining Cafe purchased a large freezer to hold its frozen meat and desserts that it sells to diners. The cost of the equipment

The Fine Dining Cafe purchased a large freezer to hold its frozen meat and desserts that it sells to diners. The cost of the equipment was $60,000 and is expected to be useful for 10 years. At the end of the 10 year period, the company should be able to salvage $5,000. They paid $1,000 to have the item shipped to their San Marcos location. They paid an additional $2,500 to modify the equipment to fit in the store. They also paid $1,500 to ensure the equipment would work with the electrical system. All costs related to the equipment were purchased on account. They use the straight-line depreciation method. What is Fine Dining's depreciable cost of this asset? (multiple choice)

A. 60,000

B. 65,000

C. 62,500

D. 61,000

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