An Asset Was Purchased for $400,000

Multiple Choice

An asset was purchased for $400,000.It had an estimated salvage value of $80,000 and an estimated useful life of 10 years.After 5 years of use, the estimated salvage value is revised to $64,000 but the estimated useful life is unchanged.Assuming straight-line depreciation, depreciation expense in Year 6 would be

A) $48,000.
B) $35,200.
C) $24,000.
D) $33,600.