On January 1, Year 1, Li Company purchased an asset that cost $80,000. The asset had an expected useful life of five years and an estimated salvage value of $16,000. Li uses the straight-line method for the recognition of depreciation expense. At the beginning of the fourth year of usage, the company revised its estimated salvage value to $8,000. Based on this information, the amount of depreciation expense to be recognized at the end of Year 4 is:
A) $12,800.
B) $16,800.
C) $33,600.
D) $20,800.

Question

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The Answer of On January 1, Year 1, Li Company purchased an asset that cost $80,000. The asset had an expected useful life of five years and an estimated salvage value of $16,000. Li uses the straight-line method for the recognition of depreciation expense. At the beginning of the fourth year of usage, the company revised its estimated salvage value to $8,000. Based on this information, the amount of depreciation expense to be recognized at the end of Year 4 is:
A) $12,800.
B) $16,800.
C) $33,600.
D) $20,800.

On January 1, Year 1, Li Company Purchased an Asset