Investments accounted for by the equity method are recorded at cost at the time of purchase

Greg's Copy Shop bought equipment for $60,000 on January 1, 2006. Greg estimated the useful life to be 3 years with no salvage value, and the straight-line method of depreciation will be used. On January 1, 2007, Greg decides that the business will use the equipment for a total of 5 years. What is the revised depreciation expense for 2007?

a. $20,000 b. $8,000 c. $10,000 d. $15,000

Education is one determining factor in future income

Indicate whether the statement is true or false