Deacon Industries purchased a delivery vehicle on January 1, 2019, for $30,000. They paid sales taxes of $2,000 and one year’s insurance premium of $2,000 on the same day. The company estimated a residual value of $3,000 at the end of the 5-year expected service life.
What was depreciation expense of the vehicle in 2020 under the sum-of-the-years’-digits depreciation method? Round to the nearest dollar.
Group of answer choices
$7,200
$7,733
$5,800
$12,800
$8,267
$7,680