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Question
The following information is available on a depreciable asset owned by Mutual Savings Bank:Purchase date June 1, Year 1
Purchase price $85,000
Salvage value $10,000
Useful life 10 years
Depreciation method straight-line
The asset's book value is $70,000 on June 1, Year 3. On that date, management determines that the asset's salvage 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 six months of Year 3 would be:
A.$8,125.00
B.$7,375.00
C.$4,062.50
D.$3,750.00
E.$7,812.50
Answer
This answer is hidden. It contains 139 characters.
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