Lulu Corporation leased equipment under an agreement that qualifies as a capital lease. The present value of the minimum lease payments is $120,000. The lease term is 5 years. After the expiration of the original five year lease the lease contains a bargain renewal option for 3 additional years.The excpected life is 10 years. Using the straight line method what would be the annual deperciation expense Lulu has on the equipment?