A company purchased equipment at the beginning of 2021 for$500,000. The equipment is depreciated on a straight-line basiswith an estimated useful life of nine years and a $50,000 residualvalue. At the beginning of 2024, the company revised theequipment’s useful life to a total of seven years (four more years)because of changing customer demand. The company also revised theexpected residual value to $30,000. What depreciation expense wouldthe company record for the year 2024 on this equipment? MultipleChoice $80,000. $87,500. $50,000. $75,000.
