If the original expected life remained the same (i.e., 5-years), but at the beginning of 2016, the salvage value was revised to $4,000, the annual depreciation expense for each of the remaining years would be:
A)$2,720.
B)$13,600.
C)$7,400.
D)$6,800.

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 - $4,000 revised salvage value)/2 years of remaining useful life = $6,800 new annual depreciation

If the Original Expected Life Remained the Same (I