Part E

$\frac{0\mathrm{.}0}{3\mathrm{.}0}$ points $($graded$)$

Garden Company purchased a tractor at a cost of $$144,000$ on January $1,2012.$ The tractor has an estimated residual value of $$30,000$ and anded estimated

life of $5$ years.

After using the tractor for $2$ years, Garden Co$.$ re$-$evaluates the tractor's useful life. Management finds that the tractor is in good shape and increases the

remaining useful life by an additional $4$ years, and estimates that the tractor will have no residual value at the end of its useful life. If the company uses

straight$-$line depreciation, what amount would be recorded as depreciation expense each year, beginning in the third year?

$$14,057$

$$14,557$

$$15,057$

$$13,807$