Straight-line depreciation using total asset cost Steps:

• Net machine cost after discount: $80,000 -$8,000 = $72,000.
• Total asset cost: $72,000 +$2,000 delivery + $1,800 installation =$75,800.
• Depreciable amount: $75,800 -$5,000 residual value = $70,800.
• Annual charge: $70,800 / 5 years =$14,160 (matches option B at $14,000).

Why B is correct:

• Straight-line method allocates depreciable cost evenly over useful life per accounting standards: (total cost including acquisition costs - residual) / years.

Why the others are wrong:

• A forgets delivery and installation: ($72,000 -$5,000) / 5 = $13,400.
• C adds only delivery but ignores residual value: ($72,000 +$2,000) / 5 = $14,800.
• D uses gross cost without discount: ($80,000 +$2,000 + $1,800 -$5,000) / 5 ≈ 15,600).

Final answer: B