Mitchell Corporation Bought Equipment on January 1, 2017

Multiple Choice

Mitchell Corporation bought equipment on January 1, 2017. The equipment cost $300,000 and had an expected salvage value of $50,000. The life of the equipment was estimated to be 6 years. The depreciation expense using the straight-line method of depreciation is

A) $58,333.
B) $60,000.
C) $41,667.
D) none of these answer choices are correct.