Able Towing Company Purchased a Tow Truck for $180,000 on January

Multiple Choice

Able Towing Company purchased a tow truck for $180,000 on January 1, 2014. It was originally depreciated on a straight-line basis over 10 years with an assumed salvage value of $36,000. On December 31, 2016, before adjusting entries had been made, the company decided to change the remaining estimated life to 4 years (including 2016) and the salvage value to $5,000. What was the depreciation expense for 2016?

A) $18,000.
B) $14,400.
C) $45,000.
D) $36,550