Answer:
The correct answer is B.
Explanation:
Giving the following information:
At the time, the equipment was reported on the parent's books at a net book value of $60,000. The remaining life of the equipment as of January 1, 2018, is six years, and straight-line depreciation, no residual value is used.
To calculate the annual depreciation, we need to use the following formula:
A) Annual depreciation= (book value) /estimated life (years)
Annual depreciation= 60,000/6= 10,000
Value on December 31, 2020:
Book value= original value - accumulated depreciation
Book value= 60,000 - 10,000*3= 30,000
