On October 1, 2022, Oriole Company places a new asset into service. The cost of the asset is $98500 with an estimated 5-year life and $20500 salvage value at the end of its useful life. What is the depreciation expense for 2022 if Oriole Company uses the straight-line method of depreciation?

$9850.

$19700.

$3900.

$4925.