Question: In 1 / 1 / 2 0 1 6 , ABC company purchased an equipment costing $ 1 8 0 0 0 . The useful

In 1/1/2016, ABC company purchased an equipment costing $18000.
The useful life was 10 years. The salvage value was $2000.
ABC decided to use the straight-line method in calculating depreciation.
During 2020, ABC had the following new information:
* it was found that the equipment will serve another 10 years, starting from 1/1/2020.
* The salvage value would be $4000 instead of $2000.
Then the depreciation expense for 2020 is:
Select one:
a.200
b. All answers are false
c.760
d.18000
e.1600

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