212

Multiple Choice

212. Santayana Company purchased a machine on January 1, 2016, for $60,000 with an estimated salvage value of $15,000 and an estimated useful life of 8 years. On January 1, 2018, Santayana decides the machine will last 12 years from the date of purchase. The salvage value is still estimated at $15,000. Using the straight-line method, the new annual depreciation will be

A) $3,375.
B) $3,750.
C) $4,500.
D) $5,000.