Jack's Copy Shop Bought Equipment for $240,000 on January 1

Jack's Copy Shop bought equipment for $240,000 on January 1, 2016. Jack estimated the useful life to be 3 years with no salvage value, and the straight-line method of depreciation will be used. On January 1, 2017, Jack decides that the business will use the equipment for a total of 5 years. What is the revised depreciation expense for 2017?

A) $80,000.
B) $32,000.
C) $40,000.
D) $60,000.

Correct Answer:

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