When originally purchased, a vehicle had an estimated useful life of 8 years.

When originally purchased, a vehicle had an estimated useful life of 8 years. The vehicle cost $25,560 and its estimated salvage value is $3,000. After 4 years of straight-line depreciation, the asset’s total estimated useful life was revised from 8 years to 6 years and there was no change in the estimated salvage value. The depreciation expense in year 5 equals:
a.$2,820.00.
b.$5,640.00. – Is the Right Answer
c.$2,988.00.
d.$5,808.00.
e.$11,280.00.
When originally purchased, a vehicle had an estimated useful life of 8 years. The vehicle cost $25,560 and its estimated salvage value is $3,000. After 4 years of straight-line depreciation, the asset’s total estimated useful life was revised from 8 years to 6 years and there was no change in the estimated salvage value. The depreciation expense in year 5 equals:
a.$2,820.00.
b.$5,640.00.
c.$2,988.00.
d.$5,808.00.
e.$11,280.00.

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