You have a piece of equipment that was purchased for your project recently for $5,000 and is expected to last 5 years in production. At the end of the five years, the expected worth of the equipment is $2,000. Using the straight-line deprecation, what is the amount that can be written off each year?

A.
$600

B.
$1200

C.
$3000

D.
$100

Explanation:
A is the correct answer. The straight-line depreciation takes the purchase value of the item, minus the salvage price of the item, divided by the number of time periods. Calculation is (5000-2000)/5 = $600.