On January 1, 2014, Margo Company Acquired Machinery at a Cost

Multiple Choice

On January 1, 2014, Margo Company acquired machinery at a cost of $160,000. This machinery was being depreciated by the double-declining-balance method over an estimated life of five years with no salvage value. At the beginning of 2016, Margo changed to and could justify straight-line depreciation. Margo's tax rate is 30 percent. The depreciation expense to be included in 2016 net income was

A) $ 7,200
B) $24,000
C) $19,200
D) $38,400