Joe's Quik Shop bought equipment for $25,000 on January 1, 2006. Joe estimated the useful life to be 5 years with no salvage value, and the straight-line method of depreciation will be used. On January 1, 2007, Joe decides that the business will use the equipment for a total of 6 years. What is the revised depreciation expense for 2007?
a. $4,000
b. $2,000
c. $3,333
d. $5,000
Answer: a. $4,000
Business
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Indicate whether the statement is true or false
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