Equipment Was Purchased for $150000

Multiple Choice

Equipment was purchased for $150000. Freight charges amounted to $7000 and there was a cost of $20000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $30000 salvage value at the end of its 5-year useful life. Depreciation expense each year using the straight-line method will be

A) $35400.
B) $29400.
C) $24600.
D) $24000.