Proctor Paper Products Purchased a Machine on January 1, 2011

Multiple Choice

Proctor Paper Products purchased a machine on January 1, 2011, at a cost of $380,000 with an estimated residual value of $30,000 at the end of its estimated useful life of 8 years.On January 1, 2013, Proctor Paper estimates that the machine only has a remaining life of 5 years and a residual value of $20,000.Proctor Paper uses straight-line amortization.Depreciation expense for 2013 would be:

A) $48,500
B) $54,500
C) $57,000
D) $72,000