Royal,IncDiscovered That Equipment Purchased Three Years Ago for $300,000 Will

Royal,Inc.discovered that equipment purchased three years ago for $300,000 will not last as long as originally estimated.The firm was depreciating the equipment at the rate of $40,000 per year with an estimated salvage value of $20,000.New estimates indicate that the equipment will last a total of five years with no salvage value.How much should Royal,Inc.record as depreciation in year four?

A) $40,000
B) $60,000
C) $90,000
D) $120,000