A business purchased a motor vehicle for $44,000 (GST inclusive i.e. $40,000 plus $4,000 GST) on 1 January 2016. The motor vehicle has an estimated residual value of $4,400 (GST inclusive i.e. $4,000 plus $400 GST) and a useful life of 200,000km. Using the units of production method, calculate the depreciation expense at 30 June 2016 if the motor vehicle travelled 20,000km for the six months ending 30 June 2016. Select one: a. $4,000 b. $1,980 c. $3,600 d. $3,960