Santayana Company Purchased a Machine on January 1, 2008, for $12,000

Multiple Choice

Santayana Company purchased a machine on January 1, 2008, for $12,000 with an estimated salvage value of $3,000 and an estimated useful life of 8 years. On January 1, 2010, Santayana decides the machine will last 12 years from the date of purchase. The salvage value is still estimated at $3,000. Using the straight-line method, the new annual depreciation will be

A) $675.
B) $750.
C) $900.
D) $1,000.