Bangor Industries Purchased a Car for $22,000 on January 1,20A

Multiple Choice

Bangor Industries purchased a car for $22,000 on January 1,20A.The car had an estimated useful life of 80,000 kilometres and an estimated residual value of $4,000.In the second year of ownership (20B) ,the car was driven 25,000 kilometres.Using the units of production method,what was the amount of depreciation expense for 20B?

A) $4,500
B) $5,000
C) $5,625
D) $6,875