Water Company Purchased a Bottling Machine on October 1, 2009

Multiple Choice

Water Company purchased a bottling machine on October 1, 2009 for $250,000.The estimated useful life is 25 years and they are using straight-line amortization.During 2011, they spent $46,000 on the machine to double its capacity and $5,000 on routine cleaning.What should the amortization expense be at September 30, 2011? The company's year end is September 30.

A) $10,000
B) $30,000
C) $12,200
D) $12,000