Johnson Company, a calendar-year company, purchased a delivery vehicle for $21,000 on 1/1/14. License and insurance costs for the vehicle will be $700 per year. The salvage value is $3,500 and it has an estimated useful life of 5 years. The vehicle will be depreciated using the double-declining balance method of depreciation. What will the depreciation expense be in year one?
$8,400
$7,000
$4,200
$3,500