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In anticipation of Digby Corporation’s new product Digle, the company purchased new plant and equipment for $39,690,000. The plant and equipment is expected to be used for 15 years, and has a planned salvage value of $0. Assuming straight-line depreciation, how much will Digle expense in depreciation next year?
A. $1,323,000.
B. $1,984,500.
C. $3,969,000.
D. $2,646,000.
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In anticipation of Digby Corporation’s new product Digle, the company purchased new plant and equipm...
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