Sharp Purchased Equipment at the Beginning of 2013 for $11,000

Multiple Choice

Sharp purchased equipment at the beginning of 2013 for $11,000.Sharp decided to depreciate the equipment over a 5-year period using the straight-line method.Sharp estimated the equipment's residual value at $1,000.The estimated fair market value at the end of 2013 was $10,000.Which of the following statements is correct concerning Sharp's financial statements at December 31,2013?

A) The book value of the equipment is $7,200.
B) The book value of the equipment is $9,000.
C) The total accumulated depreciation is $2,200.
D) The equipment will be reported on the balance sheet at it fair market value of $10,000.