[The Following Information Applies to the Questions Displayed Below

[The following information applies to the questions displayed below.]
The Terme Corporation is contemplating the purchase of new equipment,which may potentially increase revenues by 25%.Currently,sales are $750,000 per year and variable costs are 55% of sales.The equipment is expected to last for 5 years with no residual value.The cash outflow expected at the beginning of the year is $ 357,500.
-What is the amount of depreciation deduction the company could expense annually assuming the straight-line depreciation method is used?

A) $75,000
B) $41,250
C) $71,500
D) $30,250