A company paid ($ 900,000) for a building and was amortizing it by the straight-line method over

Question:

A company paid $\$ 900,000$ for a building and was amortizing it by the straight-line method over a 40 -year life, with estimated residual value of $\$ 60,000$. After 10 years it became evident that the building's remaining useful life would be 40 years with a residual value of $\$ 50,000$. Amortization for the 12th year is

a. $\$ 16,000$

b. $\$ 17,250$

c. $\$ 21,000$

d. $\$ 28,000$

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