In Year 1, a firm purchased a truck for $12,000 . The estimated salvage value was $2,000 and the estimated useful life was 10 years. In Year 4, it was determined that the salvage value would only be $1,000 and that the truck would have a total estimated useful life of 7 years rather than 10 . Assuming the straight-line method is used, what is the depreciation expense for Year 4 of the truck?
a. $1,000
b. $1,750
c. $1,950
d. $2,000
e. $2,250
D
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