A Company Purchased Factory Equipment on June 1, 2017, for $128,000

Multiple Choice

A company purchased factory equipment on June 1, 2017, for $128,000. It is estimated that the equipment will have a $8,000 salvage value at the end of its 10-year useful life. Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2017, is

A) $12,000.
B) $7,000.
C) $6,000.
D) $5,000.