On January 1, 2017, Missoula Corporation bought machinery for $ 800,000. They used double declining balance depreciation for this asset, with an estimated life of eight years, and an estimated $ 200,000 residual value. At the beginning of 2020, Missoula decided to change to the straight-line method of depreciation for this equipment, and treated the change as a change in estimate. For calendar 2020, the depreciation expense for this machinery is
A) $ 100,000.
B) $ 92,500.
C) $ 75,050.
D) $ 27,500.

Question

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The Answer of On January 1, 2017, Missoula Corporation bought machinery for $ 800,000. They used double declining balance depreciation for this asset, with an estimated life of eight years, and an estimated $ 200,000 residual value. At the beginning of 2020, Missoula decided to change to the straight-line method of depreciation for this equipment, and treated the change as a change in estimate. For calendar 2020, the depreciation expense for this machinery is
A) $ 100,000.
B) $ 92,500.
C) $ 75,050.
D) $ 27,500.

On January 1, 2017, Missoula Corporation Bought Machinery for