Nicholson Company purchased equipment on January 1, 2018, for 120,000 with an estimated residual value of 30,000 and estimated useful life of 8 years. On January 1, 2020, Nicholson decided the equipment will last 12 years from the date of purchase. The residual value is still estimated at 30,000. Using the straight-line method the new annual depreciation will be?

Select one alternative:

• 10,000
• 6,750
• 9,000
• 7,500