Equipment costing $40,000 with a salvage value of $8,000 and an estimated life of 8 years has been depreciated using the straight-line method for 2 years. Assuming a revised estimated total life of 5 years and no change in the salvage value, the depreciation expense for Year 3 would be
A) $4,800.
B) $10,667.
C) $8,000.
D) $6,400.

Question

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The Answer of Equipment costing $40,000 with a salvage value of $8,000 and an estimated life of 8 years has been depreciated using the straight-line method for 2 years. Assuming a revised estimated total life of 5 years and no change in the salvage value, the depreciation expense for Year 3 would be
A) $4,800.
B) $10,667.
C) $8,000.
D) $6,400.

Equipment Costing $40,000 with a Salvage Value of $8,000 and an Estimated