An Asset Was Purchased for $58,000 and Originally Estimated to Have

Multiple Choice

An asset was purchased for $58,000 and originally estimated to have a useful life of 10 years with a residual value of $3,000. After two years of straight-line depreciation, it was determined that the remaining useful life of the asset was only 2 years with a residual value of $2,000. What will be the annual depreciation for the asset?

A) $5,500
B) $5,800
C) $22,500
D) $23,500