E-Mail : support@onlinemathsguru.com
On January 1, 2010, Lansing Co. purchased a machine for $1,056,000 and depreciated it by the straight-line method using an estimated useful life of eight years with no salvage value. On January 1, 2013, Lansing determined that the machine had a useful life of six years from the date of acquisition and will have a salvage value of $96,000. An accounting change was made in 2013 to reflect these additional data. The accumulated depreciation for this machine should have a balance at December 31, 2013 of:
a. $584,000.
b. $616,000.
c. $640,000.
d. $704,000.