A Company Purchases for $48,000 an Asset That Has a Useful

Multiple Choice

A company purchases for $48,000 an asset that has a useful life of six years and no salvage value.After two years,the company spends $8,000 for a major overhaul that will extend the machine's useful life four years beyond the original six.Assuming straight-line depreciation,how much depreciation should be taken in year 3?

A) $4,000
B) $5,000
C) $5,600
D) $8,000