Saint Paul Company Owns a Fixed Asset with an Original

Multiple Choice

Saint Paul Company owns a fixed asset with an original cost of $100,000.The company estimates it will use the fixed asset for four years,at which time it will be sold for $10,000.The company uses straight-line depreciation.The book value of the fixed asset after three years of use is ________.

A) $22,500
B) $25,000
C) $32,500
D) $35,000