Royal Dutch Shell PLC (ticker: RDS) is a large, multinational oil company. The firm is preparing to purchase a semi-submersible oil production platform for $15 million. Additionally, it is going to cost $1.5 million to move the platform to the Mars oil-field and secure it in location. While preparing the oil field for production, an additional $2.5 million dollars will be spent on research, geological surveys, and training.

If this acquisition is going to be fully depreciated over five years using straight-line depreciation, what are the yearly depreciation expenses in this case?

A.

$2.7 million

B.

$3.0 million

C.

$3.3 million

D.

$4.5 million

E.

$3.8 million