On January 1, 20x5 your company purchased a new piece of equipment for $40,000. You estimate that you will use the equipment for 5 years and then sell it for $10,000. Using the straight-line method, depreciation expense for 20x7 would be:
a. $ 8,000
b. $ 6,000
c. $ 5,000
d. $ 4,000
e. Some other number
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