Assume Major Link purchased the equipment on August 1, 2020. If Major Link uses the straight-line method for depreciation, what is the depreciation expense for the year ended December 31, 2020?

a. \(\$ 1,875\)

b. \(\$ 1,500\)

c. \(\$ 2,083\)

d. \(\$ 4,500\)

On August 1, 2020, Major Link Inc. purchased a new piece of equipment that cost \(\$ 25,000\). The estimated useful life is five years, and estimated residual value is \(\$ 2,500\).