Machinery Was Purchased for $170,000

Multiple Choice

Machinery was purchased for $170,000. Freight charges amounted to $7,000 and there was a cost of $20,000 for building a foundation and installing the machinery. It is estimated that the machinery will have a $30,000 salvage value at the end of its 5-year useful life. Depreciation expense each year using the straight-line method will be

A) $39,400.
B) $33,400.
C) $28,600.
D) $28,000.