Use the following information to answer the given question,
| # | |
| Purchase price of equipment | 60,000 |
| Freight and installation cost | 10,000 |
| Annual maintenance cost | 1,000 |
| Estimated useful life – 5 years | |
| Estimated scrap value | 2000 |
A. N13,600
B. N11,200
C. N10,880
D. N9,600
Correct Answer: Option B
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