On January 1, 2005 the University bought a new server for $30,000. In addition, shipping/acquisition expenses for the server were $2,000. The estimated useful life is 5 years and the residual value is $3,000.

b. A year later (after one year's worth of depreciation expense has been recorded), on January 1, 2006, it was determined that the server required extra data storage capacity. This improvement was purchased and installed for $8,000. The residual value is now $5,000, but the useful life is unchanged. How much should be depreciated each year for years 2 through 5?