1. HY Company purchased a tooling machine on January 3, 2011 for $640,000. The machine was being depreciated on the straight-line method over an estimated useful life of 10 years, with no salvage value. At the beginning of 2018, the company paid $120,000 to overhaul the machine. As a result of this improvement, the company estimated that the useful life of the machine would be extended an additional 5 years (15 years total). What should be the depreciation expense recorded for the machine in 2018?

   	a.	$35,000
   	b.	$32,000
   	c.	$39,000
   	d.	$41,400