On January 1, 2012, Porter Corporation signed a five-year non-cancelable lease for certain machinery. The terms of the lease called for:

1)	Price to make annual payments of $60,000 at the end of each year (starting on Dec. 31, 2012) for five years. Porter must return the equipment to the lessor end of this period.
2)	The machinery has an estimated useful life of 6 years and no expected salvage value.
3)	Porter uses the straight-line method of depreciation for all of its fixed assets.
4)	Porter's incremental borrowing rate is 8%.
5)	The fair value of the asset at January 1, 2012 is $275,000.

For the year ended December 31, 2012, Porter should record depreciation expense for the leased equipment equal to:

a. $47,912

b. $39,927

c. $55,000

d. $0