The Following Information Is Available on a Depreciable Asset Owned

Multiple Choice

The following information is available on a depreciable asset owned by First Bank & Trust:
Purchase date October 1,Year 1
Purchase price $85,000
Salvage value $10,000
Useful life 10 years
Depreciation method straight-line
The asset's book value is $70,000 on October 1,Year 3.On that date,management determines that the asset's salvage value should be $5,000 rather than the original estimate of $10,000.Based on this information,the amount of depreciation expense the company should recognize during the last three months of Year 3 would be:

A) $2,187.50
B) $1,718.75
C) $2,031.25
D) $2,321.43
E) $1,964.29