On 30 January 2020 Kurt Ltd received a truck that had been purchased from Cobain Ltd, second hand (ie, used), at a price of $24,000. Kurt Ltd had to pay an additional $3,000 to add parts so that the truck would be ready to safely drive for Kurt Ltd's employees. The truck was transported to Kurt Ltd's worksite at a cost of $1,500.

During delivery of the truck, damage was done to Kurt Ltd's worksite and cost Kurt Ltd $500 to repair. On 1 February 2020 the truck was ready to use. Kurt Ltd estimated that the truck had a residual value of $1,500 and a useful life of 3 years. Kurt Ltd uses the straight-line method to depreciate trucks.

The amount that Kurt Ltd should record for depreciation on 30 June 2020 is:

Select one:

a.

$9,000

b.

$4,500

c.

$3,125

d.

$3,750