Horizons,Inc

Multiple Choice

Horizons,Inc.purchased a machine 3 years ago at a price of $64,500.At that time,useful life was estimated at 12 years with a $6,900 salvage value,and straight-line depreciation was used.After recording depreciation for the 3rd year,Horizons decided that for future years it would revise its original estimates from 12 to 8 years and from $6,900 to $5,500.The depreciation expense to be recorded in year 4 of the machine's life is:

A) $4,800
B) $5,575
C) $8,640
D) $8,920