Fact Pattern: Neary Company has entered into a contract to lease computers from Baldwin Company starting on January 1, Year 1. Relevant information pertaining to the lease is provided below.
Lease term	4 Years
Useful life of computers	5 Years
Present value of future lease payments	100,000
Fair value of leased asset on date of lease	105,000
Baldwins implicit rate	10%

At the end of the lease term, ownership of the asset transfers from Baldwin to Neary. Neary has properly n line depreciation o-classified this lease as a capital lease on its financial statements and uses straightcomparable assets.

What is the annual depreciation expense that Neary will record on the leased computers?