James Company bought equipment costing $40,000. The estimated salvage value of the equipment is $2,000 and the expected useful life is 5 years. Two years after the date of purchase, James spent $10,000 to enhance the efficiency of the equipment due to technological changes. The estimated useful life increased by five years and the salvage value was decreased to $0. What is the new yearly depreciation amount after the $10,000 expenditure? $3.100 None of the choices are correct. $7,600 $5,000 $4,350