An asset was purchased on 1 July 20X1 for $75,000 at which time it was thought that the asset had a residual value of $5,000 and a useful economic life of seven years. The directors have decided that as a result of not using the asset as much as was originally planned the remaining useful economic life is ten years as at 1 July 20X5. Their estimate of residual value has remained unchanged. The asset is depreciated on the straight-line basis. Calculate the depreciation charge for the year ended 30 June 20X6 in respect of this asset.

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