Cantanna Inc

Multiple Choice

Cantanna Inc.,is developing a pro forma income statement for the coming year.The chief financial officer estimates that fixed assets are $70,000,000 and that sales will be $300,000,000.If depreciation is historically 20% of fixed assets,what is the expected amount of depreciation for the upcoming year (in dollars) ?

A) $14,000,000
B) $20,000,000
C) $60,000,000
D) This figure cannot be reasonably estimated.