UVA Company purchased equipment for $80,000. The expected useful life of the equipment was seven years with a residual value of $10,000, and they use straight-line depreciation. At the end of five years of use, the company spent an additional $18, 125 for a complete overhaul of the equipment, which added five years to its estimated useful life of the equipment, with new residual value of zero. Determine the depreciation expense in year 6