Refer to Exhibit 22-3. If the revised estimated useful life of the truck is a total of eight years, what is the amount of depreciation expense that Katrina should report in its 2017 income statement?
A) $14,000
B) $16,000
C) $17,500
D) $28,000

Question

Quizplus · Accepted Answer

The depreciation expense is calculated based on the revised useful life of the truck. If the truck's useful life is revised to eight years, the annual depreciation expense would be recalculated accordingly.