An oil company is buying a semi-submersible oil rig for $20 million.Additionally,it will cost $1.5 million to move the oil rig to the oil-field and to prepare it for operations.If it is depreciated over five years using straight-line depreciation,what are the yearly depreciation expenses in this case?
A) $3.8 million
B) $4.0 million
C) $4.3 million
D) $5.0 million
Correct Answer:
Verified
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