Drake Corporation acquired equipment on January 1, 20X4, for $300,000, with an estimated useful life of 10 years and an estimated salvage value of $25,000. On January 1, 20X7, Drake Corporation revised the salvage value to $7,500 with no change in the useful life. What is depreciation expense for the year ended December 31, 20X7, if Drake Corporation used straight line depreciation?

$21,750

$27,500

$27,143

$30,000

$31,071