On January 1, 2009, Neal Corporation Acquired Equipment at a Cost

Multiple Choice

On January 1, 2009, Neal Corporation acquired equipment at a cost of $540,000.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 2012, a decision was made to change to the straight-line method of depreciation for this equipment.The depreciation expense for 2012 would be

A) $28,125.
B) $45,000.
C) $67,500.
D) $108,000.