Suppose a firm purchased an asset for ($ 100,000) and estimated, on the date of the purchase,
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Suppose a firm purchased an asset for \(\$ 100,000\) and estimated, on the date of the purchase, its useful life as 10 years with no salvage value. The firm uses straight-line depreciation. After using the asset for 5 years, the firm changes its estimate of the remaining useful life to 4 years (a total of 9 years rather than the original 10 years). How much depreciation expense will the firm recognize in the sixth year of the asset's life?
a. \(\$ 12,500\)
b. \(\$ 10,000\)
c. \(\$ 11,111\)
d. \(\$ 31,111\)
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