On April 2, 2017, Victor, Inc. acquired a new piece of filtering equipment. The cost of the equipment was $380,000 with a residual value of $30,000 at the end of its estimated useful lifetime of 10 years.

Assume that in its financial statements, Victor uses straight-line depreciation and the half-year convention. Depreciation recognized on this equipment in 2017 and 2018 will be:

$26,250 in 2017 and $34,200 in 2018.

$30,000 in 2017 and $35,000 in 2018.

$38,000 in 2017 and $34,200 in 2018.

$17,500 in 2017 and $35,000 in 2018.