Equipment Costing $60,000 with a Salvage Value of $12,000 and an Estimated

Multiple Choice

Equipment costing $60,000 with a salvage value of $12,000 and an estimated life of 8 years has been depreciated using the straight-line method for 2 years.Assuming a revised estimated total life of 5 years and no change in the salvage value, the depreciation expense for Year 3 would be

A) $7,200.
B) $16,000.
C) $12,000.
D) $9,600.