A business purchased a motor vehicle for $44,000 (GST inclusivei.e. $40,000 plus $4,000 GST) on 1 January 2016. The motorvehicle has an estimated residual value of $4,400 (GST inclusive i.e.$4,000 plus $400 GST) and a useful life of 200,000km. Using theunits of production method, calculate the depreciation expense at 30June 2016 if the motor vehicle travelled 20,000km for the six monthsending 30 June 2016.

a. $3,600
b. $4,000
c. $1,980
d. $3,960