# Problem: On January 1, year 1, L Company purchased an asset that cost $80,000. The asset had an expected useful life of five years and an estimated salvage value of$15,000. L Company uses the straight-line method for the recognition of depreciation expense. At the beginning of the fourth year of usage, the company revised its estimated salvage value to $8,000. Based on this information, the depreciation expense to be recognized for year 4 is: a.$12,800 b. $12,500 c.$33,600 d. $16,500 ###### FREE Expert Solution ###### Problem Details On January 1, year 1, L Company purchased an asset that cost$80,000. The asset had an expected useful life of five years and an estimated salvage value of $15,000. L Company uses the straight-line method for the recognition of depreciation expense. At the beginning of the fourth year of usage, the company revised its estimated salvage value to$8,000. Based on this information, the depreciation expense to be recognized for year 4 is:

a. $12,800 b.$12,500

c. $33,600 d.$16,500