Equipment Was Purchased for $25,000

Multiple Choice

Equipment was purchased for $25,000.Freight charges amounted to $700 and there was a cost of $3,000 for building a foundation and installing the equipment.It is estimated that the equipment will have a $1,600 residual value at the end of its 5-year useful life.Using the straight-line method, annual depreciation expense will be

A) $4,540.
B) $4,680.
C) $5,420.
D) $5,740.