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Cara Company purchased a vehicle for $23,000, and estimated its useful life to be 8...

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Accounting

Cara Company purchased a vehicle for $23,000, and estimated its useful life to be 8 years and its salvage value to be $4,000. After 6 years of straight -line depreciation, Cara decided to do a major overhaul at a cost of $9,500, which are expected to extend the life of the vehicle by 5 years beyond the original estimate. The new estimated salvage value is $2,000. The depreciation expense in year 7 equals: A) $ 2,464 B) $ 2,321 C) $ 2,035 D) $ 1,893. E) $ 1,750

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