Oriole Company bought equipment for $420000 on January 1, 2021. Oriole estimated the useful life to be 5 years with no salvage value, and the straight-line method of depreciation will be used. On January 1, 2022, Oriole decides that the business will use the equipment for a total of 7 years. What is the revised depreciation expense for 2022?
a. $84000.
b. $56000.
c. $48000.
d. $70000.