A company purchased new furniture at a cost of $16,000 on January 1. The furniture is estimated to have a useful life of 6 years and a $1,000 salvage value. The company uses the straight-line method of depreciation. What is the book value of the furniture on December 31 of the first year?

A. $13,333
B. $13,500
C. $16,000
D. $15,000
E. $2,500


Answer: B

Business

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