Benson Supply Bought Equipment at a Cost of $72,000 on January

Multiple Choice

Benson Supply bought equipment at a cost of $72,000 on January 2, 2008. It originally had an estimated life of ten years and a salvage value of $12,000. Benson uses the straight-line depreciation method. On December 31, 2012, Benson decided the useful life likely would end on December 31, 2013, with a salvage value of $6,000. The depreciation expense recorded on December 31, 2012, should be:

A) $6,000.
B) $21,000.
C) $12,000.
D) $10,500.