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Question - On January 2 2017, Motors Inc. purchased an engine with a cost of? $55,000. At the time, it was expected to last 5 years, with a residual valuevalue of $3,000. Three years later, on January 2, 2020 a new part was added to the engine, to increase its productivity. The new part has a cost of $27,000. Motors Inc. revised theit estimates to extend the expected useful life of the engine to 7 years, and the estimated residual value to $2,000. Find the revised amortization expense staring January 2020?
A. $10,400
B. $12,200
C. $23,800
D. $31,200
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