Doug Smith Industries Purchased Warehouses for $55 Million (No Residual

Multiple Choice

Doug Smith Industries purchased warehouses for $55 million (no residual value) at the beginning of 2015. The warehouses were being depreciated over a 10-year life using the sum-of-the-years'-digits method. At the beginning of 2018, management decided to change to straight-line.
- Ignoring taxes, the 2018 adjusting entry will include a debit to depreciation expense of:

A) $3.6 million
B) $4 million
C) $4.3 million
D) $34 million