Moose Inc. owns an office building in Michigan. The office building was reflected on the balance sheet at the end of 2020 as follows:

Acquisition Cost: $720,000

Accumulated Depreciation: $132,000 *

* Based on Straight-line depreciation, an estimated life of 25 years, and a $60,000 residual value

On January 1^st, 2021, management decided that the total estimated useful life should be changed from 25 years to 20 years (15 years remaining). Also, the residual value is reduced from $60,000 to $30,000. The depreciation method does not change. In addition, on January 1^st, 2021 Moose Inc. paid $15,000 in ordinary expenses to clean and conduct routine maintenance on the building.

Compute the annual depreciation expense for the year 2021 after the change in estimates.

$ 31,500

$ 38,200

$ 52,500

$ 27,900

$ 37,200