On January 1, 20X2, Beta Corp. leased dental equipment to Smile Corp. Pertinent details follow: The lease term is five years. The economic life of the dental equipment is seven years. The residual value at that time is $0. Beta offers its customers the choice of leasing the equipment or purchasing it for $90,000 cash. Smile is required to make annual payments of $21,159 including non-lease costs of $2,000, with the first payment due one year after the inception of the lease(January 1, 20X3). Smile has the option to purchase the equipment at the end of the lease term for $9,000. The implicit rate in the lease, which is not known by Smile, is 5%. Smile's incremental borrowing rate for transactions of this nature is 4%. Smile has determined that the option to purchase represents a bargain purchase option (BPO). Assuming that Smile depreciates its dental equipment on a straight-line basis, and does not elect to account for the lease and non-lease components in the contract as a single lease component, how much depreciation expense will be recognized in its financial statements for the year ended December 31, 20X2