Hendricks Construction purchased a crane on January 1, 2010, for $102,750. At the time of purchase, the crane was estimated to have a life of six years and a residual value of $6,750. In 2012, Hendricks determined that the crane had a total useful life of seven years and a residual value of $4,500. If Hendricks uses the straight-line method of depreciation, what will be the depreciation expense for the crane in 2012?
A) $16,000
B) $13,250
C) $9,464
D) $8,000

Question

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The Answer of Hendricks Construction purchased a crane on January 1, 2010, for $102,750. At the time of purchase, the crane was estimated to have a life of six years and a residual value of $6,750. In 2012, Hendricks determined that the crane had a total useful life of seven years and a residual value of $4,500. If Hendricks uses the straight-line method of depreciation, what will be the depreciation expense for the crane in 2012?
A) $16,000
B) $13,250
C) $9,464
D) $8,000

Hendricks Construction Purchased a Crane on January 1, 2010, for $102,750