Rotan, Inc. purchased a van on January 1, 2018, for $850,000. Estimated life of the van was five years, and its estimated residual value was $94,000. Rotan uses the straight-line method of depreciation. At the beginning of 2020, the corporation revised the total estimated life of the asset from five years to six years. The estimated residual value remained the same as estimated earlier. Calculate the depreciation expense for 2020.

A) $151,200

B) $113,400

C) $136,900

D) $75,600

Short-term notes payable represent a written promise by the business to pay a debt, without the addition of interest, within one year or less.

True or False