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Equipment Costing $90,000 with a Residual Value of $18,000 and an Estimated

Question 1

Multiple Choice

Equipment costing $90,000 with a residual value of $18,000 and an estimated life of 8 years has been depreciated using the straight-line method for 2 years. Assuming a revised estimated total life of 5 years and no change in the residual value, the depreciation expense for year 3 would be


A) $10,800.
B) $24,000.
C) $18,000.
D) $14,400.

Correct Answer:

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