A Company Purchased New Furniture at a Cost of $16,000

Multiple Choice

A company purchased new furniture at a cost of $16,000 on January 1. The furniture is estimated to have a useful life of 6 years and a $1,000 salvage value. The company uses the straight-line method of depreciation.
-What is the book value of the furniture on December 31 of the first year?

A) $13,333
B) $16,000
C) $13,500
D) $15,000
E) $2,500