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The Digby Company has just purchased $40,900,000 of plant and equipment that has an estimated useful life of 15 years. The expected salvage value at

The Digby Company has just purchased $40,900,000 of plant and equipment that has an estimated useful life of 15 years. The expected salvage value at the end of 15 years is $4,090,000. What will the depreciation expense for this purchase (exclude all other plant and equipment) be for the second year of use? (Use FASB GAAP)

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  • $5,453,333
  • $2,726,667
  • $4,908,000
  • $2,454,000

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