At the beginning of 2016, Furst revised the expected life to eight years. The annual amount of depreciation expense for each of the remaining years would be:
A)$3,520.
B)$2,200.
C)$3,120.
D)$1,950.

Question

Quizplus · Accepted Answer

($41,000 cost - $2,000 salvage value)/5 years = $7,800 original annual depreciation; $41,000 - ($7,800 x 3 years) = $17,600 book value at the time of revision; ($17,600 book value - $2,000 salvage value)/5 years of revised remaining useful life = $3,120 new annual depreciation

At the Beginning of 2016, Furst Revised the Expected Life