An Asset Was Purchased for $250000

Multiple Choice

An asset was purchased for $250000. It had an estimated salvage value of $50000 and an estimated useful life of 10 years. After 5 years of use the estimated salvage value is revised to $40000 but the estimated useful life is unchanged. Assuming straight-line depreciation depreciation expense in year 6 would be

A) $30000.
B) $22000.
C) $15000.
D) $21000.