An asset was purchased for $150,000. It had an estimated salvage value of $30,000 and an estimated useful life of 10 years. After 5 years of use, the estimated salvage value is revised to $24,000 but the estimated useful life is unchanged. Assuming straight-line depreciation, depreciation expense in year 6 would be
A) $18,000.
B) $13,200.
C) $9,000.
D) $12,600.

Question

Quizplus · Accepted Answer

The Answer of An asset was purchased for $150,000. It had an estimated salvage value of $30,000 and an estimated useful life of 10 years. After 5 years of use, the estimated salvage value is revised to $24,000 but the estimated useful life is unchanged. Assuming straight-line depreciation, depreciation expense in year 6 would be
A) $18,000.
B) $13,200.
C) $9,000.
D) $12,600.

An Asset Was Purchased for $150,000