On 30 June 2021, the following information was available for a machine:

• Purchased on 1 July 2017, cost $80,000, useful life 5 years, residual value $5,000.
• Fair value recorded on 30 June 2020 was $40,000
• Straight line depreciation is applied for machinery

On 30 June 2021, the amount that should be recorded for depreciation expense on the machine is:

Select one:

a.

$7,000

b.

$20,000

c.

$15,000

d.

$17,500