Equipment with a Cost of $640,000 Has an Estimated Salvage

Multiple Choice

Equipment with a cost of $640,000 has an estimated salvage value of $60,000 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) $160,000.
B) $175,000.
C) $165,000.
D) $145,000.