The Following Information Is Available on a Depreciable Asset Owned

Multiple Choice

The following information is available on a depreciable asset owned by Mutual Savings Bank: The asset's book value is $70,000 on July 1,Year 3.On that date,management determines that the asset's salvage value should be $5,000 rather than the original estimate of $10,000.Based on this information,the amount of depreciation expense the company should recognize during the last six months of Year 3 would be:

A) $8,125.00
B) $7,375.00
C) $4,062.50
D) $3,750.00
E) $7,812.50