Jupiter Company purchased an equipment on January 1, 2020 for $400,000 which had a residual value of $10,000 and useful life of 10 years. The value of the equipment is measured using the revaluation model and the financial year is from January 1 to December 31.

If the equipment had a market value of $300,000 as of December 31, 2020. What would be the depreciation expense in 2021 for the equipment?

a.

$39,000

b.

$32,222

c.

$0

d.

$33,333