Question: EXPLAIN ABC Inc purchased a machine on January 1, 2015, for $111,433. At the time of purchase, the machine was estimated to have a life

EXPLAIN

ABC Inc purchased a machine on January 1, 2015, for $111,433. At the time of purchase, the machine was estimated to have a life of seven years and a residual value of $37,750. On January 1 2017, the company determined that the machine had a total useful life of ten years (another eight years left) and a residual value of $45,000. If the company uses the straight-line method of depreciation, what will be the depreciation expense for the machine in 2017?

Select one:

a. $5,672.59

b. $7,150.11

c. $8,304.13

d. None of these

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