On January 1, Year 1, Li Company purchased an asset that cost $120,000. The asset had an expected useful life of five years and an estimated salvage value of $24,000. Li uses the straight-line method for the recognition of depreciation expense. At the beginning of the fourth year, the company revised its estimated salvage value to $12,000. What is the amount of depreciation expense to be recognized during Year 4?
A. $50,400
B. $25,200
C. $31,200
D. $19,200
Answer: B
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