Equipment Costing $40,000 with a Salvage Value of $8,000 and an Estimated

Multiple Choice

Equipment costing $40,000 with a salvage value of $8,000 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) $4,800.
B) $10,667.
C) $8,000.
D) $6,400.