Custom Closets Purchased Office Fixtures on January 1

Multiple Choice

Custom Closets purchased office fixtures on January 1. The cost was $16,000, and the fixtures had a residual value of $6,000. The fixtures were given a useful life of 8 years. After the end of three years, it was determined that the fixtures would be obsolete in 2 more years and their residual value would still be $6,000. What will be the depreciation under the straight-line method to the nearest dollar be for the fourth year? (Round your final answer to the nearest dollar.)

A) $1,250
B) $2,000
C) $3,125
D) $3,750