Equipment with a Cost of $320,000 Has an Estimated Salvage

Multiple Choice

Equipment with a cost of $320,000 has an estimated salvage value of $30,000 and an estimated life of 4 years or 12,000 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 3,000 hours?

A) $80,000.
B) $87,500.
C) $82,500.
D) $72,500.