On January 1, 2021, the Smith Company purchased equipment to be used in its manufacturing process. The equipment has an estimated life of eight years and an estimated residual value of $39,000. The expenditures made to acquire the asset were as follows: Purchase price $181,500 Freight charges 4,000 Installation charges 6,500 Smith's policy is to use the double-declining-balance (DDB) method of depreciation in the first two years of the equipment's life and then switch to straight line the third year of the equipment's life. What is the amount of depreciation expense for the year ended December 31, 2023? O $12,000. O $11,500. 0 $10,500. O $11,000