1. Peterson Company has the following information on one of its vehicles purchased on January 1, 2011:

   Vehicle cost	$100,000
   Useful life, years, estimated	5
   Salvage value, estimated	$20,000

   The 2012 depreciation expense for the vehicle using the straight line depreciation method was

   	1.	$32,000
   	2.	$20,000
   	3.	$40,000
   	4.	$16,000