Only Organics Has a Delivery Truck That Was Purchased for $48,000

Multiple Choice

Only Organics has a delivery truck that was purchased for $48,000 and has a salvage value of $4,000. It expects the truck to last 200,000 miles. During Year 1, the truck traveled 32,500 miles and during Year 2, the truck traveled 29,500 miles. What is the depreciation expense for Year 2 to the nearest dollar using the units-of-production method? (Round any intermediary calculations to two decimal places and your final answer to the nearest dollar.)

A) $7,150
B) $7,080
C) $7,800
D) $6,490