Historic Pieces Inc. purchased equipment on January 1, 2021 for

$275,000.

It was estimated that the equipment would have a residual value of

$25,000

at the end of its useful life. The asset's useful life was estimated at 5 years or

10,000

units of output. The company has a December 31 year end. Assuming the company uses straight-line depreciation, what is the depreciation expense for 2021?

A.

$60,000

B.

$50,000

C.

$55,000

D.27500