In January,Fanning Corporation Entered into a Contract to Acquire a New

Multiple Choice

In January,Fanning Corporation entered into a contract to acquire a new machine for its factory.The machine,which had a cash price of $400,000,was paid for as follows:

Prior to the machine's use,installation costs of $10,000 were incurred.The machine has an estimated useful life of ten years and an estimated salvage value of $10,000.What should Hunter record as depreciation expense for the first year under the straight-line method?

A) $38,100
B) $39,100
C) $40,000
D) $41,000