A Company Used Straight-Line Depreciation for an Item of Equipment

Multiple Choice

A company used straight-line depreciation for an item of equipment that cost $12,000,had a salvage value of $2,000 and a five-year useful life.After depreciating the asset for three complete years,the salvage value was reduced to $1,200 but its total useful life remained the same.Determine the amount of depreciation to be charged against the equipment during each of the remaining years of its useful life.

A) $1,000
B) $1,800
C) $5,400
D) $2,400
E) $2,000