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Penny Lane and Associates purchased a generator on January 1, 2015, for $6,300. The generator was estimated to have a five-year life and a salvage

Penny Lane and Associates purchased a generator on January 1, 2015, for $6,300. The generator was estimated to have a five-year life and a salvage value of $600. At the beginning of 2017, the company revised the expected life of the asset to six years and revised the salvage value to $300. Using straight-line depreciation, the depreciation expense recorded in 2017 would

A)

decrease assets and equity by $1,140.

B)

decrease assets and equity by $930.

C)

decrease assets and equity by $1,005.

D)

decrease assets and equity by $1,500.

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