Thom Jones (SSN 000-00-1111) is an unincorporated manufacturer of widgets. He uses the LCM method to value his inventory and reports the following for 2012:

Sales (less returns and allowances) $1,250,000

Cost of goods sold 500,000

Office expenses 10,000

Depreciation* ?

Legal services 4,000

Salary expenses 36,000

Travel expenses 30,000

Repair expenses 20,000

* Information related to Mr. Jones