Humphrey Contractors Purchased Customized Equipment in January,2015 for $500,000

Multiple Choice

Humphrey Contractors purchased customized equipment in January,2015 for $500,000.The manufacturer warranted the equipment for six years.Humphrey used double-declining balance depreciation with a useful life of eight years and no salvage value.After two full years,he now believes that the equipment will only last a total of five years.Compute his depreciation expense for 2017 if he switches to straight-line depreciation.

A) $62,500
B) $75,000
C) $93,750
D) $100,000