An asset was purchased for $120,000 on January 1, Year 1 and originally estimated to have a useful life of 10 years with a residual value of $10,000. At the beginning of the third year, it was determined that the remaining useful life of the asset was only 4 years with a residual value of $2,000. Compute the third-year depreciation expense using the revised amounts and straight-line method. Single choice

A

$11,000

B

$24,000

C

$24,500

D

$25,000

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