Refer to Exhibit 23-2.Accordingly, the appropriate accounting change was made in 2014.How much depreciation expense for this machine should Michelle record for the year ended December 31, 2014?

A) $4, 800
B) $4, 000
C) $2, 400
D) $ 0

The original depreciation per year was $48,000 / 8 = $6,000. After 4 years (2010-2013), total depreciation would be $6,000 * 4 = $24,000. The remaining book value at the start of 2014 is $48,000 - $24,000 = $24,000. With the revised useful life to 10 years total, and 4 years already passed, there are 6 years remaining. Thus, the new annual depreciation is $24,000 / 6 = $4,000.