On October 1, 2014, Mann Company Places a New Asset

Multiple Choice

On October 1, 2014, Mann Company places a new asset into service. The cost of the asset is $80,000 with an estimated 5-year life and $20,000 salvage value at the end of its useful life. What is the depreciation expense for 2014 if Mann Company uses the straight-line method of depreciation?

A) $3,000.
B) $16,000.
C) $4,000.
D) $8,000.