Able Towing Company Purchased a Tow Truck for $75,000 on January

Multiple Choice

Able Towing Company purchased a tow truck for $75,000 on January 1, 2010. It was originally depreciated on a straight-line basis over 10 years with an assumed salvage value of $15,000. On December 31, 2012, before adjusting entries had been made, the company decided to change the remaining estimated life to 4 years (including 2012) and the salvage value to $2,500. What was the depreciation expense for 2012?

A) $7,500.
B) $6,000.
C) $18,750.
D) $15,125.