Leaping Deer Company Purchased a Tractor at a Cost of $440,000

Leaping Deer Company purchased a tractor at a cost of $440,000. The tractor has an estimated residual value of $40,000 and an estimated life of 8 years, or 12,000 hours of operation. The tractor was purchased on January 1, 2015 and was used 2,400 hours in 2015 and 2,200 hours in 2016.
What amount will Leaping Deer Company report as depreciation expense over the 8-year life of the equipment using straight-line depreciation?

A) $ 40,000
B) $240,000
C) $400,000
D) $200,000