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 book value of the equipment at the beginning of the third year would be

A) $90,000.
B) $75,000.
C) $65,000.
D) $25,000.