Williams Company Purchased a Machine Costing $25,000 and Is Depreciating

question 130

Multiple Choice

Williams Company purchased a machine costing $25,000 and is depreciating it over a 10-year estimated useful life with a residual value of $3,000.At the beginning of the eighth year,a major overhaul on it was completed at a cost of $8,000,and the total estimated useful life was changed to 12 years with the residual value unchanged.How much is the year 8 depreciation expense assuming use of the straight-line depreciation method?

• A)$2,200.
• B)$2,920.
• C)$3,100.
• D)$8,800.

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