On January 1, a Machine with a Useful Life of Five

question 153

Multiple Choice

On January 1, a machine with a useful life of five years and a salvage value of $25,000 was purchased for $125,000.What is the depreciation expense for year 2 under straight-line depreciation?

• A)$15,000
• B)$75,000
• C)$20,000
• D)$60,000