Water Company Purchased a Bottling Machine on October 1, 2015

Multiple Choice

Water Company purchased a bottling machine on October 1, 2015 for $250,000. The estimated useful life is 25 years and they are using straight-line depreciation. During 2017, they spent $46,000 on the machine to double its capacity and $5,000 on routine cleaning. What should the depreciation expense be at September 30, 2017? The company's year end is September 30.

A) $10,000
B) $30,000
C) $12,200
D) $12,000