Equipment with a Cost of $160,000, an Estimated Salvage Value

Multiple Choice

Equipment with a cost of $160,000, an estimated salvage value of $40,000, and an estimated life of 15 years was depreciated by the straight-line method for 4 years. Due to obsolescence, it was determined that the useful life should be shortened by 3 years and the salvage value changed to zero. The depreciation expense for the current and future years is:

A) $11,636.
B) $16,000.
C) $11,000.
D) $8,000.