On May 1, 2010, Pinkley Company sells office furniture for $90,000 cash. The office furniture originally cost $225,000 when purchased on January 1, 2003. Depreciation is recorded by the straight-line method over 10 years with a salvage value of $22,500. What depreciation expense should be recorded on this asset in 2010?

Question 6 options:

1)

$20,250.

2)

$10,125.

3)

$6,750.

4)

$7,500.