Cuda Marine Engines, Inc. must develop the relevant cash flows for a replacement capital investment proposal. The proposed asset costs $50,000 and has installation costs of $3,000. The asset will be depreciated using a fiveyear recovery schedule. The existing equipment, which originally cost $25,000 and will be sold for $10,000, has been depreciated using an MACRS fiveyear recovery schedule, and three years of depreciation has already been taken. The new equipment is expected to result in incremental revenue of $50000 and incremental costs before depreciation of $35000. The firm has a 40 percent tax rate.

Find incremental depreciation expense for year 1. (Please provide a detail breakdown)