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Use the Following Information for Questions 30-31

Question 60

Multiple Choice

Use the following information for questions 30-31.
Major Corp. purchased a machine on January 1, 2017, for $ 900,000. The machine is being depreciated on a straight-line basis, using an estimated useful life of six years and no residual value. On January 1, 2020, Major determined, as a result of additional information, that the machine had an estimated useful life of eight years from the date of acquisition with no residual value. An accounting change was made in 2020 to reflect this additional information.
-What is the amount of depreciation expense on this machine that should be reported in Major's income statement for calendar 2020?


A) $ 225,000
B) $ 180,000
C) $ 112,500
D) $ 90,000

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