Assume the company acquires a new vehicle. This vehicle will last for 100,000 miles, or 5 years. The cost of the vehicle is $35,000 with an estimated salvage value of $3,500. In year 1, the vehicle was driven 20,000 miles. Which of the following is correct?

The book value of the vehicle will be decreased by $6,000 in the first year using the straight-line method

The vehicle will depreciate at $7,000 in the first year using the units of production method.

The vehicle will depreciate at $6,300 per year using the straight-line method.

The vehicle will depreciate at $683 per month using the straight-line method.