The Texas Longhorns and Dallas Cowboys, a U.S. college and a professional football team based in Texas, are experimenting with using a robot, called Mobile Virtual Player (MVP), during practices so that players do not have to tackle each other and risk injury. Instead, the players can tackle the foam-padded robot that mimics the sensation of tackling a person. The MVP robot is battery-operated and can move around the field for approximately 3 hours, the length of a regular practice. The MVP robot was available through a limited release in the fall of 2016 with a full roll-out in January 2017. Pricing is $8,250 per piece.

MVP: Mobile Virtual Player was selected as the winner of the "Training the Athlete" category in the NFL 's second annual 1st and Future competition, powered by Texas Medical Center! Please, watch first four minutes of the winning pitch from the MVP company founder and CEO as well as Dartmouth Football Coach Buddy Teevens.

Question 4 of 5

1.0 Points

Assume that the Texas Longhorns bought three of the MVP robots with cash. The tax rate was 8.25%. Delivery and installation was covered by the seller (free for the team). So, the purchase price with tax was 1.0825x$8,250=$8,931 per robot. What is the annual straight-line depreciation expense that needs to be recorded for three robots at the end of the first year? Estimated useful life of MVPs is four years and expected salvage value is $0.

A. $2,233
B. $6,698
C. $8,931
D. $26,793