Nicholson Company Purchased Equipment on January 1, 2012, for €28,000

Multiple Choice

Nicholson Company purchased equipment on January 1, 2012, for €28,000 with an estimated residual value of €7,000 and estimated useful life of 8 years. On January 1, 2014, Nicholson decided the equipment will last 12 years from the date of purchase. The residual value is still estimated at €7,000. Using the straight-line method the new annual depreciation will be:

A) €1,575.
B) €1,750.
C) €2,100.
D) €2,333.