A Company Purchased New Furniture at a Cost of $14,000

Multiple Choice

A company purchased new furniture at a cost of $14,000 on September 30. The furniture is estimated to have a useful life of 8 years and a salvage value of $2,000. The company uses the straight-line method of depreciation.
- How much depreciation expense will be recorded for the furniture for the first year ended December 31?

A) $375.00
B) $1,750
C) $437.50
D) $1,500.00
E) $500