Equipment Was Purchased for $17,000 on January 1, 2010

Multiple Choice

Equipment was purchased for $17,000 on January 1, 2010.Freight charges amounted to $700 and there was a cost of $2,000 for building a foundation and installing the equipment.It is estimated that the equipment will have a $3,000 residual value at the end of its 5-year useful life.What is the amount of accumulated depreciation at December 31, 2011, if the straight-line method of depreciation is used?

A) $6,680
B) $3,340
C) $2,860
D) $5,720