Newson's Courier Service Recently Purchased a New Delivery Van for $29,000

Newson's Courier Service recently purchased a new delivery van for $29,000. The van is estimated to have a useful life of 8 years or 250,000 kilometers. The van will have a residual value of $1,000. The company uses the units-of-production method of depreciation. Assuming the van travelled 36,000 kilometers. during the first year, what is the depreciation expense for the van in year 1?

A) $3,625
B) $3,500
C) $4,032
D) $4,176