25 Gates Co. purchased machinery on January 2, 2009, for $440,000. The straight-line method is used and useful life is estimated to be 10 years, with a $40,000 residual value. At the beginning of 2015 Gates spent $96,000 to overhaul the machinery. After the overhaul, Gates estimated that the useful life would be extended 4 years (14 years total), and the residual value would be $20,000. The depreciation expense for 2015 should be out of question Select one: a. $40,000. b. $37.000. c. $34,500 d. $28,250 26 Depletion expense out of question Select one: a. Includes tangible equipment costs in the depletion base, b. excludes intangible development costs from the depletion base. c. is usually part of cost of goods sold. d. excludes restoration costs from the depletion base