New Machine will cost $750,000, and will be depreciated using 7-year MACRS. Old Machine is 2 years old, originally cost $500,000, and is depreciated using 5-year MACRS. Given the information above, what is the change (i.e., incremental or difference) in depreciation for Year 2?

$127,500

$122,500

$102,500

$62,500

$27,500