Equipment Costing $105,000 with a Salvage Value of $21,000 and an Estimated

Multiple Choice

Equipment costing $105,000 with a salvage value of $21,000 and an estimated life of 8 years has been depreciated using the straight-line method for 2 years.Assuming a revised estimated total life of 6 years and no change in the salvage value, the depreciation expense for Year 3 would be

A) $15,750.
B) $14,000.
C) $21,000.
D) $10,500.