Santayana Company Purchased a Machine on January 1, 2009, for $8,000

Multiple Choice

Santayana Company purchased a machine on January 1, 2009, for $8,000 with an estimated residual value of $2,000 and an estimated useful life of 8 years.On January 1, 2011, Santayana decides the machine will last 12 years from the date of purchase.The residual value is still estimated at $2,000.Using the straight-line method, the new annual depreciation will be

A) $450.
B) $500.
C) $600.
D) $667.