Use the following data for the questions <37 39>.

On July 1, 20x1, XYZ company acquired equipment for $350,000. The estimated life of the equipment is 10 years or 17,000 hours. The estimated residual value is $10,000. During 20x1, the equipment was used 2,000 hours.

37. What is the depreciation expense during 20x1 if the company used the straight-line method? Round to the nearest dollar.

A. $17,000

B. $17,500

C. $34,000

D. $35,000

Your answer (A, B, C, or D)

Show your calculation in detail.