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? a. 6,750 b. 7,500 c. 9,000 d. 10,000