The following information is available on a depreciable asset owned by Mutual Savings Bank: 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

Question

The following information is available on a depreciable asset owned by Mutual Savings Bank:  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

Quizplus · Accepted Answer

The Answer of The following information is available on a depreciable asset owned by Mutual Savings Bank:  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

The Following Information Is Available on a Depreciable Asset Owned