Modular Manufacturing purchased a new milling lathe for $200,000. Freight and insurance costs were $6,000. A new electrical circuit was installed to run the milling lathe at a cost of $12,000. It is estimated the milling lathe will have an 8 -year useful life and will have a salvage value of $20,000. Depreciation expense each year using the straight-line method will be $27,250 $22,500 $23,250 $24,750