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Please explain this question with reference to relevant formulas and CLEAR working out ...

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Accounting

imagePlease explain this question with reference to relevant formulas and CLEAR working out

Question 3 1 / 1 pts Sarah purchased equipment at the beginning of July 2016 for $25,000. She decided to depreciate the equipment over a four year period using the straight-line method. Sarah estimated the equipment's residual value at $1,000. The estimated fair market value at the end of at June 2017 was $24,000. Which of the following statements is correct concerning Sarah's financial statements at 30 June 2017? The equipment will be reported on the statement of financial position at its fair market value of $24,000. The carrying amount of the equipment is $19,000. The carrying amount of the equipment is $18,250. The total accumulated depreciation is $6,250

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