On January 1, 2020, Mario and Luigi Plumbers purchased tools and equipment at a cost of $80,000. The equipment has an estimated residual value of $5,000 and an estimated life of 10 years.

What amount will the company report as total depreciation expense over the 10-year life of the equipment using straight-line depreciation?

Group of answer choices

$7,500

$8,000

$80,000

$75,000