On January 1, 2018, The Waiki Company purchased new equipment for $375,000. The equipment had an estimated $30,000 salvage value at the end of its estimated 10-year useful life. Straight-line depreciation has been recorded.

Before adjusting the accounts for 2023, Waiki reduces the useful life of the equipment to a total of 8 years and decreases the salvage value to $25,500. Calculate the 2023 depreciation expense.