Jackson Corporation Acquired Equipment on January 1, 2007, for $320,000

Jackson Corporation acquired equipment on January 1, 2007, for $320,000. The equipment had an estimated useful life of 10 years and an estimated salvage value of $25,000. On January 1, 2010, Jackson Corporation revised the total useful life of the equipment to 8 years and the estimated salvage value to be $20,000. Compute depreciation expense for the year ending December 31, 2010, if Jackson Corporation uses straight- line depreciation.

A) $26,477
B) $46,300
C) $42,300
D) $39,300