The Following Information Is Available on a Depreciable Asset Owned

The following information is available on a depreciable asset owned by Mutual Savings Bank: $\begin{array}{|l|r|}\hline \text { Purchase date } & \text { June 1, Year } \\\hline \text { Purchase price } & \$ 85,000 \\\hline \text { Salvage value } & \$ 10,000 \\\hline \text { Useful life } & 10 \text { years } \\\hline \text { Depredation method } & \text { straight-line } \\\hline\end{array}$ The asset's book value is $70,000 on June 1, Year 3. On that date, management determines that the asset's salvage value should be $5,000 rather than the original estimate of $10,000. Based on this information, the amount of depreciation expense the company should recognize during the last six months of Year 3 would be:

A) $8,125.00
B) $7,375.00
C) $4,062.50
D) $3,750.00
E) $7,812.50