In Year 1, a Firm Purchased a Truck for $12,000

Multiple Choice

In Year 1, a firm purchased a truck for $12,000.The estimated salvage value was $2,000 and the estimated useful life was 10 years.In Year 4, it was determined that the salvage value would only be $1,000 and that the truck would have a total estimated useful life of 7 years rather than 10.Assuming the straight-line method is used, what is the depreciation expense for Year 4 of the truck?

A) $1,000
B) $1,750
C) $1,950
D) $2,000
E) $2,250