An Oil Company Is Buying a Semi-Submersible Oil Rig for $15

question 107

Multiple Choice

An oil company is buying a semi-submersible oil rig for $15 million. Additionally, it will cost to move the oil rig to the oil-field and to prepare it for operations. If it is depreciated over five years using straight-line depreciation, what are the yearly depreciation expenses in this case?

• A) $2.7 million
• B) $3.0 million
• C) $3.3 million
• D) $3.8 million

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