Drago Company Purchased Equipment on January 1, 2010, at a Total

Multiple Choice

Drago Company purchased equipment on January 1, 2010, at a total invoice cost of $600,000. The equipment has an estimated salvage value of $15,000 and an estimated useful life of 5 years. What is the amount of accumulated depreciation at December 31, 2011, if the straight-line method of depreciation is used?

A) $120,000
B) $240,000
C) $117,000
D) $234,000