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. N14,000
B. N13,000
C. N12,000
D. N10,000
Correct Answer: Option B
B. N13,000
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