The Bucol Company Purchased a Tooling Machine in 2001for $120,000

Multiple Choice

The Bucol Company purchased a tooling machine in 2001for $120,000. The machine was being depreciated on the straight-line method over an estimated useful life of 20 years, with no salvage value. At the beginning of 2011, when the machine had been in use for ten years, the company paid $20,000 to overhaul the machine. As a result of this improvement, the company estimated that the useful life of the machine would be extended an additional five years. What would be the depreciation expense recorded for the above machine in 2011?

A) $4,000
B) $5,333
C) $6,000
D) $7,333