A company enters into a finance lease of an asset with a fair value of 58,000 and an estimated useful life of 10 years. The lease term is for a period of 8 years and the expected residual value of the asset at the end of the lease term is 2,000. The lessee's interest in the residual value is 100%. The annual depreciation charge based on the straight line method would be:

a. 5,600.

b. 5,800.

c. 7,000.

d. 7,250.

e. 6,000.