Machinery was purchased for $360000. Freight charges amounted to $13000 and there was a cost of $40000 for building a foundation and installing the machinery. It is estimated that the machinery will have a $60000 salvage value at the end of its 8-year useful life. Depreciation expense each year using the straight-line method will be

$38375.

$37500.

$51625.

$44125.