Drago Company purchased equipment on January 1, 2013, at a total invoice cost of $600,000. The equipment has an estimated residual value of $15,000 and an estimated useful life of 5 years. What is the amount of accumulated depreciation at December 31, 2014, if the straight-line method of depreciation is used?
A) $120,000
B) $240,000
C) $117,000
D) $234,000
Correct Answer:
Verified
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