A Corporation purchased equipment on January 1, 2015 for $500,000. The equipment had an estimated useful life of 5 years and an estimated salvage value of $50,000. After using the equipment for 2 years, the company determined that the equipment could be used for an additional 6 years and have a salvage value of $9,000. Assuming that the company uses straight-line depreciation, compute depreciation expense for the year ending December 31, 2017.

Select one:

a. $53,333

b. $45,000

c. $48,500

d. $51,833