Equipment Was Purchased for $85000 on January 1 2016

Multiple Choice

Equipment was purchased for $85000 on January 1 2016. Freight charges amounted to $3500 and there was a cost of $10000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $15000 salvage value at the end of its 5-year useful life. What is the amount of accumulated depreciation at December 31 2017 if the straight-line method of depreciation is used?

A) $33400
B) $16700
C) $14300
D) $28600