As of January 1, 2012, Sun Inc. purchased a boat at a cost of $600,000. When purchased, the company was using the double-declining depreciation method. Key info on the asset at time of purchase is the following.
Estimated useful life is 10 years.
Residual Value is $27,200.
At the beginning of 2015, the CFO decided to change to straight-line depreciation method. Compute the depreciation expense for 2015.
$42,000
$30,720
$60,000
$40,000