Brevard Corporation Purchased a Taxicab on January 1, 2016 for $34,000

Multiple Choice

Brevard Corporation purchased a taxicab on January 1, 2016 for $34,000 to use for its shuttle business. The cab is expected to have a five-year useful life and no salvage value. During 2017, it retouched the cab's paint at a cost of $1,600, replaced the transmission for $4,000 (which extended its life by an additional 2 years) , and tuned-up the engine for $200. If Brevard Corporation uses straight-line depreciation, what annual depreciation will Brevard report for 2017?

A) $6,800.
B) $5,200.
C) $5,500.
D) $5,467.