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Carla Vista Company purchased a machine on January 1, 2019, for $810000. At the date of acquisition, the machine had an estimated useful life of 6 years with no salvage. The machine is being depreciated on a straight-line basis. On January 1, 2022, Carla Vista determined, as a result of additional information, that the machine had an estimated useful life of 8 years from the date of acquisition with no salvage. An accounting change was made in 2022 to reflect this additional information.
Problem 1: What is the amount of depreciation expense on this machine that should be charged in Carla Vista's income statement for the year ended December 31, 2022?
Option 1: $202500Option 2: $81000Option 3: $101250Option 4: $162000
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