A Company Used Straight-Line Depreciation for Equipment That Cost $12,000

Multiple Choice

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

A) $1,000.
B) $1,800.
C) $5,400.
D) $2,400.
E) $2,000.