A company used straight-line depreciation for an item of equipment that cost $12,550, had a salvage value of $2200 and a six-year useful life. After depreciating the asset for three complete years, the salvage value was reduced to $1255 but its total useful life remained the same. Determine the amount of depreciation to be charged against the equipment during each of the remaining years of its useful life:
A. $2200.
B. $1980.
C. $4498.
D. $1035.
E. $2040.
Answer: E
Business
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