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Question(s) / Instruction(s):

The following information is available on a depreciable asset owned by National Trust & Bank:

Purchase date October 1, 2007

Purchase price $85,000

Salvage value $14,000

Useful life 10 years

Depreciation method straight-line

The asset\'s book value is $77,000 on October 1, 2009. On that date, management determines that the asset\'s salvage value should be $4,000 rather than the original estimate of $14,000. Based on this information, the amount of depreciation expense the company should recognize during the last three months of 2009 would be:

A.            $9,125.00

B.            $2,218.75

C.            $2,531.25

D.            $2,281.25

E.            $3,041.67

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