On January 1, 2013 Ballard Company Spent $6,000 on an Asset

Multiple Choice

On January 1, 2013 Ballard Company spent $6,000 on an asset to improve its quality. The asset had been purchased on January 1, 2012 for $26,000. The asset had a $2,000 salvage value and a 6-year life. Ballard uses straight-line depreciation. What would be the book value of the asset on January 1, 2016?

A) $12,000.
B) $10,400.
C) $5,200.
D) $12,400.