Schager Company purchased a computer system on January 1, 2019, at a cash cost of $27,500. The estimated useful life is 10 years, and the estimated residual value is $4,250. The company will use the double declining-balance depreciation method. How much is the 2020 depreciation expense?

Multiple Choice

• $4,400.

• $4,650.

• $5,500.

• $3,720.