Kulle Optical Ltd. purchased optical lens coating equipment for $94,000 on January 1, 2020. At that time, management determined that the equipment would have a useful life of five years and a residual value of $18,000. Kulle uses the straight-line depreciation method. On January 1, 2023, management revised its initial estimates and determined that the lens coating equipment would have a useful life of eight years, rather than five years, and that it would have a residual value of $12,000 at the end of that time.

Required

Determine the depreciation expense for 2023.