Assume Major Link purchased the equipment on January 1, 2020. If Major Link uses the straight-line method for depreciation, what is the asset's carrying amount at the end of 2021?

a. \(\$ 13,500\)

b. \(\$ 15,000\)

c. \(\$ 18,625\)

d. \(\$ 16,000\)

On August 1, 2020, Major Link Inc. purchased a new piece of equipment that cost \(\$ 25,000\). The estimated useful life is five years, and estimated residual value is \(\$ 2,500\).