Columbia Manufacturing Corp

Multiple Choice

Columbia Manufacturing Corp.purchased a new lathe machine for its baseball bat manufacturing plant on January 1.The machine cost $12,000 and is expected to be used in production for 4 years at which time its estimated salvage value will be $2,000.The yearly straight-line depreciation for this asset would be

A) $2,500
B) $3,000
C) $4,000
D) $12,000
E) $9,500