On July 1, 2023 concord company purchased factory equipment for $686000 with estimated salvage value of $31000. The estimated useful life for the equipment is 10 years. During 2020, 2021, and 2022 the equipment is depreciated using straight-line method. During 2026, $97000 is spent to improve the equipments efficiency and prolong its useful life. The new useful life is expected to be 10 years beginning in 2023 and revised salvage value is $46500. What is depreciation expense on the equipment for 2023?

A. $65500

B. 50675

C. 32750

D. 57275