(7 minutes) Ogden Company purchased a piece of equipment on 1/1 2018 for $10,000. The useful life is 10 years, residual value $1,000, and straight-line depreciation is used. On 1/1/20 an major component on the equipment is replaced for a $4,000 cost and the replacement increases the productive capability of the equipment. Ogden now believes the total useful life of the equipment is 12 years and the residual value is $1,500. What is the 2020 depreciation expense? O $1,250 O $558. O $1,070. O $1.120