Answer:
The correct answer is B.
Explanation:
Giving the following information:
Equipment was purchased for $60,000. Freight charges amounted to $2,800 and there was a cost of $8,000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $12,000 salvage value at the end of its 5-year useful life. Depreciation expense each year using the straight-line method
Annual depreciation= (original cost - salvage value)/estimated life (years)
Total purchase cost= 60,000 + 2,800 + 8,000= $70,800
Annual depreciation= (70,800 - 12,000)/5= $11,760
