Sargent Corporation Bought Equipment on January 1, 2010

Multiple Choice

Sargent Corporation bought equipment on January 1, 2010. The equipment cost $90,000 and had an expected salvage value of $15,000. The life of the equipment was estimated to be 6 years. The depreciation expense using the straight-line method of depreciation is

A) $17,500.
B) $18,000.
C) $12,500.
D) none of the above.