Whippit Company installed a new air conditioning system in their main office on January 1, 2008. The system cost $360,000 and was expected to last 9 years (no Salvage Value). On March 31, 2009, new nanotechnology emission guidelines led to the replacement of the principal fanning mechanism at a cost of $120,000. The life of the cooling system nor its salvage value was affected but the efficiency was greatly increased. Whuppit uses the straight-line method of depreciation. The depreciation expense for the year 2009 was:

50000

40000

36000

55000