Revision of Depreciation}

On January 1, 2016, Shapiro Inc. purchased a machine for \(\$ 115,000\). Shapiro depreciated the machine with the straight-line depreciation method over a useful life of 10 years, using a residual value of \(\$ 5,000\). At the beginning of 2018 , a major overhaul, costing \(\$ 30,000\), was made. After the overhaul, the machine's residual value is estimated to be \(\$ 7,500\), and the machine is expected to have a remaining useful life of 11 years.

\section*{Required:}

Determine the depreciation expense for 2018 .

\section*{Cornerstone Exercise