Multiple Choice
On January 1,2011,Mardi Gras Shipping bought a machine for $1,500,000.At that time,this machine had an estimated useful life of six years,with no salvage value.As a result of additional information,Mardi Gras determined on January 1,2014,that the machine had an estimated useful life of eight years from the date it was acquired,with no salvage value.Accordingly,the appropriate accounting change was made in 2014.How much depreciation expense for this machine should Mardi Gras record for the year ended December 31,2014,assuming Mardi Gras uses the straight-line method of depreciation?
A) $125,000
B) $150,000
C) $187,500
D) $250,000
Correct Answer:
Verified
Correct Answer:
Verified
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