A Company Purchased New Computers at a Cost of $14,000

Multiple Choice

A company purchased new computers at a cost of $14,000 on September 30. The computers are estimated to have a useful life of 4 years and a residual value of $2,000. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the computers for the first year ended December 31?

A) $250
B) $750
C) $875
D) $1,000
E) $3,000