At the Beginning of Year 1,a Company Purchased Equipment for $21,000

At the beginning of Year 1,a company purchased equipment for $21,000 and decided to depreciate it over a five-year period using the straight-line method.The equipment's residual value was estimated at $1,000.The estimated fair market value at the end of Year 1 was $20,000.Which of the following statements is correct at December 31,Year 1?

A) The balance in the equipment account is $17,000.
B) The book value of the equipment is $17,000.
C) The total accumulated depreciation is $4,200.
D) The equipment will be reported on the balance sheet at its fair market value of $20,000.