Stine Company Purchased Machinery with a List Price of $64,000

Multiple Choice

Stine Company purchased machinery with a list price of $64,000. They were given a 10% discount by the manufacturer. They paid $400 for shipping and sales tax of $3,000. Stine estimates that the machinery will have a useful life of 10 years and a residual value of $20,000. If Stine uses straight-line depreciation, annual depreciation will be

A) $4,100.
B) $4,072.
C) $6,100.
D) $3,760.