Question: Spiro Corp. uses the sum-of-the-years digits method to depreciate equipment purchased in January 2008 for $20,000. The estimated salvage value of the equipment is $2,000

Spiro Corp. uses the sum-of-the-years’ digits method to depreciate equipment purchased in January 2008 for $20,000.

The estimated salvage value of the equipment is $2,000 and the estimated useful life is four years. What should Spiro report as the asset’s carrying amount as of December 31, 2010?

a. $1,800

b. $2,000

c. $3,800

d. $4,500

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