Marker Steel Purchased a Machine on January 1, 20X1, at a Cost

Multiple Choice

Marker Steel purchased a machine on January 1, 20X1, at a cost of $380,000 with an estimated residual value of $30,000 at the end of its estimated useful life of eight years. On January 1, 20X3, Proctor Paper estimates that the machine only has a remaining life of five years and a residual value of $20,000. Proctor Paper uses straight-line amortization. Depreciation expense for 20X3 would be:

A) $54,500
B) $55,000
C) $48,500
D) $57,000