A company purchased a new delivery van at a cost of $56,000 on July 1. The delivery van is estimated to have a useful life of 5 years and a salvage value of $4400. 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?
A. $5280.
B. $5600.
C. $5160.
D. $6040.
E. $10,320.
Answer: C
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