Yellow Ltd purchased an asset 6 years ago for $75,000. At that time it was deemed to have a residual value of $15,000 and estimated useful life of 6 years. After 4 years of use, the asset was overhauled at a cost of $35,000. The overhaul extended the useful life of the asset by 4 more years but reduced its residual value to $7,000. Assuming the straight-line method of depreciation is applied, calculate the depreciation expense in the year after the overhaul (rounded to the nearest dollar).

Answer: Depreciation expense in the year after overhaul = $10,500 Required: Show the workings for the final answer above. (P.S. I do not understand how they have calculated the final answer.)