Do-Good Inc

Do-Good Inc. is a newly formed not-for-profit organization. On January 1, 2012, its first day of operations, Do-Good purchased equipment costing $8,000. The equipment is estimated to have a useful life of 4 years, with no residual value at that time. This transaction was the only transaction that took place to date. The equipment was purchased from a restricted fund contribution of $8,400. What would be the balance in the Capital Fund on December 31, 2012?

A) ($1,600) .
B) $400.
C) $4,400.
D) $6,400.