Annette Company purchased new excavating equipment on May 1, 2017. The equipment has a cost of $36,000, an estimated life of 5 years, and an estimated residual value of $6,000. Assuming the company uses double declining balance of depreciation, determine the depreciation expense for the financial year ending on December 31, 2018.

$11,040

$11,520

$8,640

$10,560