On January 1, Year 1, Li Company purchased an asset that cost $75,000. The asset had an expected useful life of five years and an estimated salvage value of $15,000. Li uses the straight-line method for the recognition of depreciation expense. At the beginning of the fourth year, the company revised its estimated salvage value to $7,500. What is the amount of depreciation expense to be recognized during Year 4?

Multiple Choice

A$31,500

B$19,500

C$15,750

D$12,000