Silicon Valley Company purchased a van at a cost of $42,000 and expects it can be sold for $6,000 after 120,000 miles of service. Assuming the units-of-production method is used and the van is driven for 24,000 miles during the first year, the depreciation at the end of the first year would be

$4,200.

$1,200.

$12,000.

$7,200.

None of these answers are correct.