Brevard Corporation Purchased a Taxicab on January 1, 2013 for $25,500

Multiple Choice

Brevard Corporation purchased a taxicab on January 1, 2013 for $25,500 to use for its shuttle business. The cab is expected to have a five-year useful life and no salvage value. During 2014, it retouched the cab's paint at a cost of $1,200, replaced the transmission for $3,000 (which extended its life by an additional 2 years) , and tuned-up the motor for $150. If Brevard Corporation uses straight-line depreciation, what annual depreciation will Brevard report for 2014?

A) $5,100.
B) $3,900.
C) $4,125.
D) $4,100.