Question Content Area

Equipment with a cost of $57,330, an estimated residual value of $2,730, and an estimated life of 14 years was depreciated by the straight-line method for 7 years. Due to obsolescence, it was determined that the remaining useful life should be shortened by 4 years and the residual value changed to zero. The depreciation expense for the current and future years is

a. $10,010

b. $2,145

c. $27,300

d. $2,730