On October 1, 2010, Holt Company Places a New Asset

Multiple Choice

On October 1, 2010, Holt Company places a new asset into service. The cost of the asset is $60,000 with an estimated 5-year life and $15,000 salvage value at the end of its useful life. What is the depreciation expense for 2010 if Holt Company uses the straight-line method of depreciation?

A) $2,250
B) $12,000
C) $3,000
D) $6,000