A Company Purchased a New Delivery Van at a Cost

Multiple Choice

A company purchased a new delivery van at a cost of $45,000 on July 1. The delivery van is estimated to have a useful life of 6 years and a salvage value of $3,000. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the van during the first year ended December 31?

A) $4,000.
B) $7,000.
C) $3,500.
D) $3,250.
E) $6,500.