An entity purchased an asset on January 1, 2018 for $300,000. The asset is being depreciated on a straight line basis over 10 years. The asset's residual value is $50,000. During 2021, the total useful life was re-estimated to be 8 years with a residual value of $80,000. What is the depreciation expense for the year 2021?
Question 1 options:
a)
$29,000
b)
$25,000
c)
$30,000
d)
$18,125