A Company Used Straight-Line Depreciation for an Item of Equipment

Multiple Choice

A company used straight-line depreciation for an item of equipment that cost $12,000,had a salvage value of $2,000,and had a five-year useful life.After depreciating the asset for three complete years,the salvage value was reduced to $1,200 and its total useful life was increased from 5 years to 6 years.Determine the amount of depreciation to be charged against the machine during each of the remaining years of its useful life:

A) $1,000.
B) $1,800.
C) $1,467.
D) $1,600.
E) $2,160.