On January 2, 2023, Sandhill Ltd. signed a ten-year non-cancellable lease for a heavy-duty drill press. The lease required annual payments of $57500, starting December 31,2023 , with title passing to Sandhill at the end of the lease. Sandhill is accounting for this lease as a capital (finance) lease. The drill press has an estimated useful life of 20 years, with no residual value. Sandhill uses straightline depreciation for all its plant assets. The lease payments were determined to have a present value of $385830, based on an implicit interest rate of 8%. On its 2023 income statement, how much depreciation expense should Cambridge report in connection with this lease? $19292 $23000 $38584 $11500