A firm's capital budgeting project requires equipment that costs $40,000 and will be depreciated on a straight-line basis (equal annual amounts) over 4 years to a $4,000 book value. What is the depreciation each year over the machine's 4 year life?

A) 9,000

B) 9,250

C) 10,000

D) 10,250

E) Insufficient information to answer.