On January 1, 2009, Slade Inc. purchased a machine for $115,000. Slade depreciated the machine with the straight-line depreciation method over a useful life of 10 years, using a residual value of $5,000. At the beginning of 2011, a major overhaul, costing $30,000, was made. After the overhaul, the machine’s residual value is estimated to be $7,500, and the machine is expected to have a remaining useful life of eleven years.
Determine the depreciation expense for 2011.