On January 1, 2023, Chao Inc purchases a piece of equipment for $35,000 cash. They expect to use the equipment in operations to generate revenue for five years, at which time they believe they can sell the equipment for $3,000. Using the straight line method, what is Chao's annual depreciation expense? Prepare the depreciation schedule below, using the straight line method. Depreciation Schedule Year Beginning Book Value Depreciation Expense Ending Book Value 1 2 3 4 5