An Asset Was Purchased for $100,000

Multiple Choice

An asset was purchased for $100,000. It had an estimated salvage value of $25,000 and an estimated useful life of 10 years. After 5 years of use, the estimated salvage value is revised to $20,000 but the estimated useful life is unchanged. Assuming straight-line depreciation, depreciation expense in Year 6 would be

A) $15,000.
B) $10,625.
C) $8,500.
D) $12,500.