On January 1^st, 2013, PC Inc

On January 1^st, 2013, PC Inc. disposed of an old elevator for $10,000. The elevator had a carrying value $20,000 (Cost: $100,000, Accumulated Amortization: $80,000) . On January 2^nd, 2013, a new elevator was purchased for $200,000 with an expected useful life of 20 years and a salvage value of $40,000. Ignoring any of PC's other long-lived assets, the amount of amortization expense that PC would record for 2013 would be:

A) $25,000.
B) $20,000.
C) $10,000.
D) $8,000.

Correct Answer:

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