Question $8$

Problems $7-12$ use the following information:$$A firm purchased a new piece of equipment with an estimated useful life of five years.$$The cost of the equipment was $$55,000.$ The salvage value is estimated to by $$5,000$ at the end of year $5.$

Using the straight$-$line method of depreciation, what is the book value for year $4?$

A$.$

$10,000$

B$.$

$45,000$

C$.$

$35,000$

D$.$

$25,000$

E$.$

$15,000$