Bcompany switched from the sum-of-the-years-digits depreciation method to straight-line depreciation in 2018. the change affects machinery purchased at the beginning of 2016 at a cost of $86,100. the machinery has an estimated life of five years and an estimated residual value of $4,305. what is b's 2018 depreciation expense?

Option B

Explanation: In simple words, competitive industry is the one in which both the consumer and the producer are price takers due to the high number of participants on both sides. No individual firm could control the price and the profit is totally dependent on the quantity sold.

However, the cost structure could be different of different firms and in the long run only those firms survives that have a reasonable profit margin on sales. The other firms earns nothing and ultimately leaves the industry.

Hence the correct option is B .