On January 1,2011,Ace Electronics Paid $400,000 Cash for a Computer

Multiple Choice

On January 1,2011,Ace Electronics paid $400,000 cash for a computer that would be used to store and process its accounting information.The computer has a 5-year useful life,after which it will be worthless because it will be obsolete.Ace Electronics uses the straight-line method to depreciate its assets.At December 31,2012,Ace will have accumulated depreciation of ________.

A) $320,000
B) $40,000
C) $80,000
D) $160,000