A Company Purchased Factory Equipment on June 1, 2018, for $160,000

Multiple Choice

A company purchased factory equipment on June 1, 2018, for $160,000. It is estimated that the equipment will have a $10,000 salvage value at the end of its 10-year useful life. Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2018, is

A) $15,000.
B) $8,750.
C) $7,500.
D) $6,250.