On January 1, 2012, Neal Corporation Acquired Equipment at a Cost

Multiple Choice

On January 1, 2012, Neal Corporation acquired equipment at a cost of $720,000. Neal adopted the sum-of-the-years'-digits method of depreciation for this equipment and had been recording depreciation over an estimated life of eight years, with no residual value. At the beginning of 2015, a decision was made to change to the straight-line method of depreciation for this equipment. The depreciation expense for 2015 would be

A) $37,500.
B) $60,000.
C) $90,000.
D) $144,000.