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B is corrent.  Depreciation is a nonmonetary item. Therefore, it must be adjusted to current year dollars.  The $200,000 of historical cost depreciation is converted into year 3 dollars by multiplying it by the To/From ratio of 200/180.


A is incorrect. Depreciation is a nonmonetary item. Therefore, it must be adjusted to current year dollars.  The $200,000 of historical cost depreciation is converted into year 3 dollars by multiplying it by the To/From ratio of 200/180.


C is incorrect. Depreciation is a nonmonetary item. Therefore, it must be adjusted to current year dollars.  The $200,000 of historical cost depreciation is converted into year 3 dollars by multiplying it by the To/From ratio of 200/180.


C is incorrect. Depreciation is a nonmonetary item. Therefore, it must be adjusted to current year dollars.  The $200,000 of historical cost depreciation is converted into year 3 dollars by multiplying it by the To/From ratio of 200/180.