A Company Purchased Factory Equipment on June 1, 2014 for $48,000

Multiple Choice

A company purchased factory equipment on June 1, 2014 for $48,000. It is estimated that the equipment will have a $6,000 residual 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) $4,800.
B) $4,200.
C) $2,450.
D) $6,000.