An Asset That Cost $16,200 with a Residual Value of $1,200

Multiple Choice

An asset that cost $16,200 with a residual value of $1,200 and a useful life of 5 years was amortized for two years using the straight-line method.In the third year, the useful life was determined to be 2 years longer than initially expected.Amortization in the third year would be:

A) $3,000
B) $2,143
C) $2,040
D) $1,800