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Problem 1: Corporation acquired equipment on January 1, 2017, for $300,000. The equipment had an estimated useful life of 10 years and an estimated salvage value of $25,000. On January 1, 2020, Corporation revised the total useful life of the equipment to 5 more years and the estimated salvage value to be $10,000. Compute depreciation expense for the year ending December 31, 2020, if Corporation uses straight-line depreciation.
Select one:
A. $43,500B. $38,500C. $25,938D. $41,500
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