On July 1, 20x1, XYZ company acquired equipment for $350,000. The estimated life of the equipment is 10 years or 17,000 hours. The estimated residual value is $10,000. During 20x1, the equipment was used 2,000 hours.

What is the depreciation expense during 20x1 if the company used the straight-line method? Round to the nearest dollar. A. $17,000 B. $17,500 C. $34,000 D. $35,000