When she formed a partnership with a friend, Caty contributed some equipment from her previous company. In the previous company, Caty paid $27,000 for the equipment and had accumulated straight-line depreciation on 8 of the 15 years of useful life with no salvage value. If the partnership would have had to purchase the equipment, they would have spent $10,000. What is the difference between Catys book value for the equipment and the equipments fair value?

A. The book value is $2,600 lower than the fair value.

B. The book value is $17,000 lower than the fair value.

C. The book value is $17,000 higher than the fair value.

D. The book value is $2,600 higher than the fair value.