Construction equipment at a cost of $ 150,000 has been purchased by a small highway contractor in Sparta, TN. If these equipment are depreciated using the 150% Declining Balance method with a salvage value of $20,000, determine the depreciation in year 3 assuming the equipment is depreciated over a life of 6 years. $37, 500 $32, 500 $21, 094 $28, 125