Bates Company Purchased Equipment on January 1, 2013, at a Total

Multiple Choice

Bates Company purchased equipment on January 1, 2013, at a total invoice cost of $900,000. The equipment has an estimated salvage value of $22,500 and an estimated useful life of 5 years. What is the amount of accumulated depreciation at December 31, 2014, if the straight-line method of depreciation is used?

A) $180,000.
B) $360,000.
C) $175,500.
D) $351,000.