Interline Trucking Purchased a Tractor Trailer for $84,000

Multiple Choice

Interline Trucking purchased a tractor trailer for $84,000. Interline uses the units-of-activity method for depreciating its trucks and expects to drive the truck 1,000,000 miles over its 12-year useful life. Salvage value is estimated to be $12,000. If the truck is driven 80,000 miles in its first year, how much depreciation expense should Interline record?

A) $5,333.
B) $6,720.
C) $5,760.
D) $6,222.