The Following Information Is Available on a Depreciable Asset Owned

Multiple Choice

The following information is available on a depreciable asset owned by First Bank & Trust: The asset's carrying amount is $70,000 on October 1, Year 3. On that date, management determines that the asset's residual value should be $5,000 rather than the original estimate of $10,000. Based on this information, the amount of depreciation expense the company should recognize during the last three months of Year 3 would be:

A) $2,187.50
B) $1,718.75
C) $2,031.25
D) $2,321.43
E) $1,964.29