MobileT inc. purchased equipment for $100,000 on January 1, Year 1. The equipment had an estimated 10-year useful life and a $20,000 salvage value. Carr uses the straight-line depreciation method. In its Year 2 income statement, what amount should Carr report as depreciation expense for the equipment?
A) $2,000
B) $8,000
C) $10,000
D) $12,000
