Nicholson Company Purchased Equipment on January 1, 2010, for €20,000

Multiple Choice

Nicholson Company purchased equipment on January 1, 2010, for €20,000 with an estimated residual value of €5,000 and estimated useful life of 8 years.On January 1, 2012, Nicholson decided the equipment will last 12 years from the date of purchase.The residual value is still estimated at €5,000.Using the straight-line method the new annual depreciation will be:

A) €1,125.
B) €1,250.
C) €1,500.
D) €1,667.