Julie Bought a Boat at the Beginning of the Year

Multiple Choice

Julie bought a boat at the beginning of the year for $35,000. The boat has an estimated life of 8 years and a salvage value of $14,000 at the end of the 8-year period. What is the book value after the first year?

A) $32,375
B) $29,750
C) $21,000
D) $2,625