On January 1, 2005, Dent Co. purchased a machine for $792,000 and depreciated it by the straight-line method using an estimated useful life of eight years with no salvage value. On January 1, 2008, Dent determined that the machine had a useful life of six years from the date of acquisition and will have a salvage value of $72,000. An accounting change was made in 2008 to reflect these additional data. The accumulated depreciation for this machine should have a balance at December 31, 2008 of
A) $438,000.
B) $462,000.
C) $480,000.
D) $528,000.

Question

Quizplus · Accepted Answer

$792,000 × 3/8 = $297,000
$297,000 + [($792,000 - $297,000 - $72,000) × 1/3] = $438,000.