Humphrey Contractors purchased customized equipment in January,2015 for $500,000.The manufacturer warranted the equipment for six years.Humphrey used double-declining balance depreciation with a useful life of eight years and no salvage value.After two full years,he now believes that the equipment will only last a total of five years.Compute his depreciation expense for 2017 if he switches to straight-line depreciation.
A)$62,500
B)$75,000
C)$93,750
D)$100,000

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The Answer of Humphrey Contractors purchased customized equipment in January,2015 for $500,000.The manufacturer warranted the equipment for six years.Humphrey used double-declining balance depreciation with a useful life of eight years and no salvage value.After two full years,he now believes that the equipment will only last a total of five years.Compute his depreciation expense for 2017 if he switches to straight-line depreciation.
A)$62,500
B)$75,000
C)$93,750
D)$100,000

Humphrey Contractors Purchased Customized Equipment in January,2015 for $500,000