TB MC Qu. 08-72 (Algo) On January 1, Year 1, Li Company purchased... On January 1, Year 1, Li Company purchased an asset that cost $40,000. The asset had an expected useful life of five years and an estimated salvage value of $8,000. Li uses the straight-line method for the recognition of depreciation expense. At the beginning of the fourth year, the company revised its estimated salvage value to $4,000. What is the amount of depreciation expense to be recognized during Year 4 ? Multiple Choice $6,400 58,400 $16,800 Multiple Choice $6.400 $8.400 $16.800 $10.400