An asset was purchased for $120,000 on January 1, 2015, and originally estimated to have a useful life of 10 years with a residual value of $10,000. At the beginning of 2017, it was determined that the remaining useful life of the asset was only 4 years with a residual value of $2,000. Calculate the 2017 depreciation expense using the revised amounts and straight-line method.

a. $11,000

b. $24,000

c. $24,500

d. $25,000

Answer rating: 100% (QA)

b 24000 Computation of third year depreciation Depreciation cost ... View the full answer