Haaland Company depreciates an asset with an original cost of $8,000 over 5 years using the sum-of-the-years digits method of depreciation. The asset was purchased on July 1, 2020 and the depreciation expense for 2020 is $1,250. What is the estimated salvage value of the asset?

Multiple Choice

• $250

• $500

• $750

• $1,250

• $1,000