On January 1, 2023, Seattle acquired equipment for $7,000 and sold it the same day to Portland for $12,000. The equipment had a remaining useful life of 10 years on that date. Both companies are subject to an effective tax rate of 40%. Which of the following is the correct amount of depreciation expense appearing on Portland's 2023 consolidated income statement

$34,700

$34,850

$34,500

$35,000