On January 1, 2014, Woodstock, Inc. purchased a machine costing $51,250. Woodstock also paid $1,350 for transportation and installation. The expected useful life of the machine is 7 years and the residual value is $5,700. How much is the annual depreciation expense assuming use of the straight-line depreciation method O $6,700 O $7,321 O $7,592. O $7.514