On January 1 . 2011, Mardi Gras Shipping bought a machine for $1,500,000 . At that time, this machine had an estimated useful life of six years, with no salvage value. As a result of additional information, Mardi Gras determined on January 1 . 2014, that the machine had an estimated useful life of eight years from the date it was acquired, with no salvage value. Accordingly, the appropriate
accounting change was made in 2014 . How much depreciation expense for this machine should Mardi Gras record for the year ended December 31 . 2014, assuming Mardi Gras uses the straight-line method of depreciation?
a. $125,000
b. $150,000
c. $187,500
d. $250,000
B
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