On November 1, 2016, Blossom Company places a new asset into service. The cost of the asset is $88500 with an estimated 10-year life and $10500 salvage value at the end of its useful life. What is the depreciation expense for 2017 if Blossom Company uses the straight-line method of depreciation?

$4425.

$1950.

$1300.

$7800.