An Asset Bought for $168 000 with a Zero Residual

Multiple Choice

An asset bought for $168 000 with a zero residual value was expected to last for seven years before it needed replacing.If at the end of the third year it was decided to extend its total useful life by four years new remaining life is now eight years) calculate the new depreciation charge using the straight-line approach.

A) $11 000
B) $13 000
C) $12 500
D) $12 000