A machine with an original cost of $120,000 and no salvage value had an estimated useful life of 6 years, but after 4 complete years, it was decided that the original estimate of useful life should have been 8 years. Assuming the company uses straight-line depreciation, the amount of depreciation expense in year 5 is

a) 20,000

b) 80,000

c) 10,000

d) 12,000

e) 5,000

Question

Elsa Craig

3 January, 08:41

+2

Answers (2)

Know the Answer?

Paul Christensen · Answer 1

Answer is B because 6/120,000 = 20,000 x 4 = 80,000

Giana Branch · Answer 2

Giana Branch 3 January, 12:24

0

the answer would be 80,000