TB MC Qu. 03-125 A company purchased a new delivery van at a cost of...

A company purchased a new delivery van at a cost of $60,000 on July 1. The delivery van is estimated to have a useful life of 6 years and a salvage value of $4,800. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the van during the first year ended December 31?

Multiple Choice

• $5,600.

• $4,600.

• $6,480.

• $9,200.

• $5,000.