A wood products company has decided to purchase new logging equipment for $100,000 with a trade-in of its old equipment. The old equipment has a BV of $10,000 at the time of the trade-in. The new equipment will be kept for 10 years before being sold. Its estimated SV at the time is expected to be $5,000. The recovery period of the asset, using the GDS guidelines, is

(a) 10 years

(b) 7 years

(c) 5 years

(d) 3 years