Equipment with a cost of $80,141.00, an estimated residual value of $5,864.00, and an estimated life of 14 years was depreciated by the straight-line method for 7 years. Due to obsolescence, it was determined that the useful life should be shortened by 5 years and the residual value changed to zero. The depreciation expense for the current and future years is

Select the correct answer.

$21,501.25

$37,138.50

$3,583.54

$3,071.61