A Company Purchased Factory Equipment on April 1, 2014, for $96,000

Multiple Choice

A company purchased factory equipment on April 1, 2014, for $96,000. It is estimated that the equipment will have a $12,000 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, 2014, is

A) $9,600.
B) $8,400.
C) $6,300.
D) $7,200.