Taxpayer is a company dedicated to the sale of merchandise in Puerto Rico and subject to the payment of taxes. The company acquired assets used for retail sale on March 25, 20X1 for $84,000 with a residual value of $7,000.

Determine the depreciation expense that the business can claim for the first year (20X1) if it uses accelerated depreciation.

a. $12,003

b. $5,500

c. $11,003

d. $11,000