AA Riser Owns Machinery for Moving and Delivering Plants to Its

Multiple Choice

AA Riser owns machinery for moving and delivering plants to its customers. The recorded cost of the machinery is $38,000. It is estimated that the machinery will be able to move 120,000 plants over its life. The company depreciates the machinery using straight-line depreciation over a useful life of twelve years and an estimated residual value of $2,000. The amount that will be charged annually as depreciation will be:

A) $3,600
B) $3,000
C) $3,167
D) $3,800