Equipment Was Purchased for $90,000

Multiple Choice

Equipment was purchased for $90,000. Freight charges amounted to $4,200 and there was a cost of $12,000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $18,000 salvage value at the end of its 5-year useful life. Depreciation expense each year using the straight-line method will be

A) $21,240.
B) $17,640.
C) $14,760.
D) $14,400.