A company purchased a piece of equipment costing $$125,000$ and is depreciating it assuming a $10-$

year life. The residual value was originally expected to be $$10,000.$ At the end of the fifth year, the

motor was replaced $($a major overhaul$)$ at a cost of $$40,000.$ The overhaul increased the efficiency

of the equipment. How much is depreciation expense in the sixth year assuming straight$-$line

depreciation, no change in estimated useful life and no change in residual value?

$19,500$

$21,500$

None of the above.

$18,500$

$11,500$