Nanki Corporation purchased equipment at the beginning of 2012 for $650,000. In

Question

Nanki Corporation purchased equipment at the beginning of 2012 for $650,000. In 2012 and 2013, Nanki depreciated the asset on a straight-line basis with an estimated useful life of 8 years and a $10,000 residual value. In 2014, due to changes in technology, Nanki revised the useful life to a total of six years (four more years) with zero residual value. What depreciation expense would Nanki record for the year 2014 on this equipment?

a. $108,333.

b. $106,667.

c. $122,500.

d. $81,667.

I am getting C for this one, can you explain?

Explanation / Answer

c. $122,500 this answer according the question requirments

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