On January $1,2022,$ Woodstock, Incorporated purchased a machine costing $$36,750.$ Woodstock also paid $$1,250$ for transportation and installation. The expected useful life of the machine is $5$ years and the residual value is $$5,500.$

How much is the annual depreciation expense, assuming use of the straight$-$line depreciation method?

Multiple Choice

$$7,600.$

$$5,208.$

$$6,500.$

$$7,350.$