A Company Purchased a New Truck at a Cost of $42,000

Multiple Choice

A company purchased a new truck at a cost of $42,000 on July 1.The truck 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 truck during the first year ended December 31?

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