Broadway Ltd. purchased equipment on January 1, 2011, for $800,000, estimating a five-year useful life and no residual value. In 2011 and 2012, Broadway depreciated the asset using the straight-line method. In 2013, Broadway changed to sum-of-years'-digits depreciation for this equipment. What depreciation would Broadway record for the year 2013 on this equipment?
A) $120,000.
B) $160,000.
C) $200,000.
D) $240,000.
Correct Answer:
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