Sheffield Company constructed a building at a cost of $2,662,000 and occupied it beginning in January 1998. It was estimated at that time that its life would be 40 years, with no salvage value. In January 2018, a new roof was installed at a cost of $363,000, and it was estimated then that the building would have a useful life of 25 years from that date. The cost of the old roof was $193,600.

What amount of depreciation should be charged for the year 2018?

Depreciation for the year 2018 (Assume the cost of the old roof is removed)

Depreciation for the year 2018 (Assume the cost of the new roof is debited to accumulated depreciation - building)