On October 1, 2018, Holt Company Places a New Asset

Multiple Choice

On October 1, 2018, Holt Company places a new asset into service. The cost of the asset is $120,000 with an estimated 5-year life and $30,000 salvage value at the end of its useful life. What is the depreciation expense for 2018 if Holt Company uses the straight-line method of depreciation?

A) $4,500
B) $24,000
C) $6,000
D) $12,000