On October $1,2022,$ Wildhorse Manufacturing Company purchased a piece of high$-$tech equipment for $$90,500$ cash. Wildhorse estimated the equipment would have a $7-$year useful life and a residual value of $$8,600.$ The company uses straight$-$line depreciation and has a September $30$ fiscal year end.

On October $1,2024,$ Wildhorse paid $$15,500$ cash to upgrade the equipment. It is expected that the upgrade will significantly reduce the operating costs of the equipment. Wildhorse also reviewed the equipment's expected useful life and estimated that, due to changing technology, the equipment's total expected useful life will be $6$ years and its residual value will be $$5,000.$

$($a$)$

Calculate the annual depreciation expense for the first two years of the equipment's life.

Annual depreciation expense

$ per year

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