A Company Purchased Equipment Valued at $200,000 on January 1

Multiple Choice

A company purchased equipment valued at $200,000 on January 1.The equipment has an estimated useful life of six years or five million units.The equipment is estimated to have a salvage value of $13,400.Assuming the straight-line method of depreciation,what is the book value at the end of the second year if 1.5 million units were produced?

A) $166,667.00
B) $88,977.80
C) $96,416.25
D) $168,900.00
E) $137,800.00