Yukelson Company owns the building occupied by its administrative office. The office building was reflected in the accounts at the end of last year as follows:

Cost when acquired$330,000Accumulated depreciation (based on straight-line depreciation, anestimated life of 50 years, and a $30,000 residual value)78,000

During January of this year, on the basis of a careful study, management decided that the total estimated useful life should be changed to 30 years (instead of 50) and the residual value reduced to $22,500 (from $30,000). The depreciation method will not change.

What is the the annual depreciation expense after the change in estimates?