Willow Industries purchased and placed in service equipment costing $50,000 on January 1, 2016. The equipment was expected to last 10 years and to have no salvage value. The factory manager revised the estimate of the equipment's useful life on January 1, 2020. The equipment is now expected to last an additional 8 years (a useful life of 12 years in total). The company used the straight-line method to depreciate factory equipment. What is the new annual depreciation expense amount? $2,500 $3,125 $3,750 $6,250