Victory Company purchases office equipment at the beginning of the year at a cost of $15,000.The machine is depreciated using the straight-line method.The machine's useful life is estimated to be 7 years with a $1,000 salvage value.The book value at the end of 7 years is:

A) $2,143.
B) $1,000.
C) $2,000.
D) $14,000.
E) $0.

Salvage Value

An estimate of the residual value of an asset at the end of its useful life, after it has been fully depreciated.

Book Value

The net value of a company's assets found on its balance sheet, often calculated as total assets minus intangible assets and liabilities.

Straight-line Method

A method of calculating depreciation which spreads the cost of an asset evenly across its useful life.