Zenith Corporation Bought a Machine on January 1,2014

Multiple Choice

Zenith Corporation bought a machine on January 1,2014.In purchasing the machine,the company paid $40,000 cash and signed an interest-bearing note for $105,000.The estimated useful life of the machine is five years,after which time the salvage value is expected to be $10,000.Given this information,how much depreciation expense would be recorded for the year ending December 31,2015,if the company uses the sum-of-the-years'-digits depreciation method?

A) $45,000
B) $36,000
C) $40,000
D) $34,000