What should the depreciation expense be on machine


On January 1, Year 1, JIM Company purchased a machine for $550,000. It had a useful life of 10 years and no salvage value. The machine was depreciated by the straight-line method. On January 1, Year 2, JIM decided to change to the sum-of-the-years'-digits method. JIM can justify the change. What should the depreciation expense be on this machine for the year ended December 31, Year 3?

a) $55,000

b) $80,000

c) $88,000

d) $99,000

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Accounting Basics: What should the depreciation expense be on machine
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