Chance Stables Purchased a New Baler as Its Annual Equipment

Chance Stables purchased a new baler as its annual equipment purchase. The baler was purchased for $10,000 down and a $50,000 note and has an estimated life of 8 years. The baler will
Be worthless at the end of its life. The annual amount of depreciation on this equipment is:

A) $10,000
B) $6,250
C) $7,500
D) $50,000