A Company Purchased New Furniture at a Cost of $14,000

Multiple Choice

A company purchased new furniture at a cost of $14,000 on September 30.The furniture is estimated to have a useful life of 8 years and a salvage value of $2,000.The company uses the straight-line method of depreciation.What is the book value of the furniture on December 31 of the first year?

A) $13,562.50
B) $12,250.00
C) $12,500.00
D) $13,500.00
E) $13,625.00