1.Blue, Inc. incurred the following costs related to equipment purchased on January 1, 2015:

Purchased equipment for $50,000, terms 2/10, net 30.Paid for the equipment on January 5, 2015.

Had the equipment installed and paid the installer $3,000.

Paid the freight bill for the truck that delivered the equipment for $500.

Advertised a new product that will be produced by the new equipment, $1,200.

Sales taxes paid on the equipment amounted to $4,000.

Blue believes the machine will be useful for 5 years, at which time it will be sold for $3,000.

Assuming Blue, Inc. uses the straight-line method of depreciation, what will depreciation expense on its 2016 income statement be?

a.$10,700

b.$11,040

c.$11,980

d.$21,700

e.$22,080

PLEASE PROVIDE EXPLANATION THANK YOU