On October 1, 2022, Sandhill Manufacturing Company purchased a piece of high-tech equipment for $90,500 cash. Sandhill estimated the equipment would have a 7-year useful life and a residual value of $8,600. The company uses straight-line depreciation and has a September 30 fiscal year end. On October 1, 2024, Sandhill paid $15,200 cash to upgrade the equipment. It is expected that the upgrade will significantly reduce the operating costs of the equipment. Sandhill also reviewed the equipment's expected useful life and estimated that, due to changing technology, the equipment's total expected useful life will be 5 years and its residual value will be $4,900. (a) Your answer is incorrect. Calculate the annual depreciation expense for the first two years of the equipment's life. Annual depreciation expense per year