Tristan, Inc. operates a business manufacturing bamboo cell phone cases. He purchased a wood engraving machine in January year 1 for $30,000 and the estimated useful life was 10 years. The engraving machine was being depreciated using the straight-line method and has no salvage value. In year 5, Tristan, impressed with the machine, decides to extend the useful life to 12 years. What amount of depreciation expense should Tristan report in its financial statements for the year ending December 31, year 5?
A. $4,500
B. $2,250
C. $1,800
D. $3,000
Answer:B
Tristan, Inc. operates a business manufacturing bamboo cell phone cases. He purchased a wood engraving machine in January year 1 for $30,000 and the estimated useful life was 10 years. The engraving machine was being depreciated using the straight-line method and has no salvage value. In year 5, Tristan, impressed with the machine, decides to extend the useful life to 12 years. What amount of depreciation expense should Tristan report in its financial statements for the year ending December 31, year 5?
A. $4,500 B. $2,250 C. $1,800 D. $3,000