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ABC Corporation purchased equipment on January 1, 2018, for $650,000. In 2018 and 2019, ABC depreciated the asset on a straight-line basis with an estimated
ABC Corporation purchased equipment on January 1, 2018, for $650,000. In 2018 and 2019, ABC depreciated the asset on a straight-line basis with an estimated useful life of eight years and a $10,000 residual value. In the beginning of 2020, due to changes in technology, ABC revised the remaining useful life to four years with no residual value. What depreciation would ABC record for the year 2020 on this equipment?
A) $108,333
B) $106,667
C) $122,500
D) $134,000
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