Madison Corporation acquired a machine for $27,000 and has recorded depreciationfor two years using the straight-line method over a five-year life and $8,000 residual value. Atthe start of the third year of use, Madison revised the estimated useful life to a total of 10 years.Estimated residual value declined to $0.How much depreciation should Madison record in each of the asset’s last eight years (thatis, year 3 through year 10), following the revision?a. $2,700b. $10,800c. $2,425d. Some other amount

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A:

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