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 company can claim for the fourth year (20X4) if it uses accelerated depreciation.

a.

$4,205

b.

$4,587

c.

$10,491

d.

$9,617