Multiple Choice Question 142

Blue Spruce Corp. purchased a taxicab on January 1, 2016 for $64000 to use for its shuttle business. The cab is expected to have a five-year useful life and no salvage value. During 2017, it retouched the cab's paint at a cost of $1600, replaced the transmission for $4000 (which extended its life by an additional 2 years), and tuned-up the engine for $300. If Blue Spruce Corp. uses straight-line depreciation, what annual depreciation will Blue report for 2017?

$9200.

$10367.

$12800.

$9517.