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Financial Accounting

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Moderate

Balance Sheet PPE under STL Method

FINACT-9NB4ED

Spirit Corporation purchased a piece of equipment to be used in its operations for \$230,000 on July 1, 2015 with an estimated salvage value of \$20,000 and a 7-year useful life. Spirit records partial-year depreciation on equipment and uses the straight-line method.

What is the amount of net equipment as presented on the balance sheet at the end of 2017?

A

\$75,000

B

\$140,000

C

\$155,000

D

\$135,000