On January 1, year 1, Bumper Corporation acquired a machine at a cost of $41,000. Originally, the machine's service life was estimated to be ten years and its residual value to be $1,000. The straight-line method was used for depreciation. On January 1, year 7, it was determined that the depreciation amount should be changed. The machine's remaining service life was estimated at five years and its residual value at $1,500. For the end of year 7, in regard to this machine, Bumper should record depreciation of:

a. $3,100

b. $2,900

c. $3,400

d. $4,000

Answer rating: 100% (QA)

Answer a 3100 Original cost 41000 Scrap 1000 Life 10Years ... View the full answer