A lumber company purchases and installs a wood chipper for $300,000.00. The chipper's useful life is 10 years. The estimated salvage value at the end of 10 years is $25,000.00. Using straight-line depreciation, what is the annual depreciation expense for the chipper?

a) $27,500.00
b) $30,000.00
c) $27,000.00
d) $28,500.00