Nationwide Trucking purchased a tractor trailer for $112,000. Nationwide uses the units-of-activity method for depreciating its trucks and expects to drive the truck 1,000,000 miles over its 12-year useful life. Salvage value is estimated to be $16,000. If the truck is driven 80,000 miles in its first year, how much depreciation expense should Nationwide record?

Select one:

a. $7,110

b. $8,960

c. $7,680

d. $8,296