Question $6($S points$)$

On January $1,$ the Judo Company purchased new training equipment for its athletes. The equipment had a cost of $$70,000,$ transportation costs of $$1,000,$ and set up costs of $$500.$ Judo spent $$800$ training their sensei and athletes on its proper use. The useful life of the equipment is ten years and has a residual value of $$900.$ How much depreciation expense should the Judo Company take in the second year, if straight$-$line is being used?

$$7,000$

$$7,140$

$$7,060$

$$7,230$