An Asset Was Purchased for $120,000 on January 1, Year

Multiple Choice

An asset was purchased for $120,000 on January 1, Year 1 and originally estimated to have a useful life of 10 years with a residual value of $10,000. At the beginning of the third year, it was determined that the remaining useful life of the asset was only 4 years with a residual value of $2,000. Calculate the third-year depreciation expense using the revised amounts and straight-line method.

A) $25,000
B) $11,000
C) $24,000
D) $24,500