A Company Purchased Factory Equipment on May 1, 2012 for $30,000

Multiple Choice

A company purchased factory equipment on May 1, 2012 for $30,000. It is estimated that the equipment will have a $4,200 residual value at the end of its 8-year useful life. Using straight-line depreciation, the depreciation expense for calendar 2012 is

A) $3,750.
B) $3,225.
C) $2,500.
D) $2,150.