On January 1, 2010, Danville Corporation acquired a machine at a cost of $60, 000.The machine's service life was estimated to be ten years and its residual value to be $6, 000.The straight-line method was used for depreciation.On January 1, 2015, the machine's remaining service life was estimated at eight years and its residual value at $3, 000.For 2015, in regard to this machine, Danville should record depreciation of

A) $3, 375
B) $3, 750
C) $4, 150
D) $6, 750

Residual Value

The estimated amount that an asset will be worth at the end of its useful life, often used in calculating depreciation and lease payments.

Straight-Line Method

The Straight-Line Method is a way of allocating the cost of an asset evenly over its useful life, commonly used in depreciation and amortization calculations.

Depreciation

The methodical distribution of a physical asset's cost over its expected lifespan, representing deterioration or becoming outdated.