A Plant Asset Was Purchased on January 1 for $40,000

Multiple Choice

A plant asset was purchased on January 1 for $40,000 with an estimated residual value of $8,000 at the end of its useful life.The current year's Depreciation Expense is $4,000 calculated on the straight-line basis and the balance of the Accumulated Depreciation account at the end of the year is $20,000.The remaining useful life of the plant asset is

A) 10 years.
B) 8 years.
C) 5 years.
D) 3 years.