Answer:
The correct answer is A.
Explanation:
Giving the following information:
Sargent Corporation bought equipment on January 1, 2015. The equipment cost $360,000 and had an expected salvage value of $60,000. The life of the equipment was estimated to be 6 years.
Under the straight-line method of depreciation, we need to use the following formula:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (360,000 - 60,000)/6= $50,000
