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.
-What is the book value of the furniture on December 31 of the first year?

A) $12,500.00
B) $13,625.00
C) $13,562.50
D) $12,250.00
E) $13,500.00