Tomko Company Purchased Machinery with a List Price of $32,000

Multiple Choice

Tomko Company purchased machinery with a list price of $32,000. They were given a 10% discount by the manufacturer. They paid $200 for shipping and sales tax of $1,500. Tomko estimates that the machinery will have a useful life of 10 years and a residual value of $10,000. If Tomko uses straight-line depreciation, annual depreciation will be

A) $2,050.
B) $2,036.
C) $1,880.
D) $3,050.