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Nanki Corporation Purchased Equipment at the Beginning of 2012 for $650,000.In

Question 59

Multiple Choice

Nanki Corporation purchased equipment at the beginning of 2012 for $650,000.In 2012 and 2013,Nanki depreciated the asset on a straight-line basis with an estimated useful life of 8 years and a $10,000 residual value.In 2014,due to changes in technology,Nanki revised the useful life to a total of six years (four more years) with zero residual value.What depreciation expense would Nanki record for the year 2014 on this equipment?


A) $108,333.
B) $106,667.
C) $122,500.
D) $81,667.

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